SellAustinTexas

Much of the recent boost to Austin’s housing market recovery has been the tax credit offered to new homebuyers. Now that credit is coming to an end, but the assistance would still be helpful to many people now and in the immediate future. There are many, including the National Association of Realtors, that are pushing to get this credit extended.

Yesterday, Ron Phillips, Vice President of the NAR, testified at a hearing before the senate committee on the tax credit and other issues. You can read the transcript here.

He quotes Arun Raha, chief economist for the state of Washington, who was quoted in the Seattle Times saying: “every 1,000 home sales generate $112.4 million of economic activity with $71.9 million of it directly from home-sale preparation and the actual real-estate transaction. In addition, more than 700 new jobs are created. This is not a balance-sheet bailout, it’s real help for our neighbors and communities.” Phillips continues to point out the ‘trickle-up’ effect, that is, new home buyers allowing current homeowners the chance to purchase another home. As Raha says, “[these] purchases spark a surge of home buying that ripples across the economy and into the future. Most of their purchases are homes that someone else has been waiting to sell so that they, in turn, can purchase another house.”

NAR President Charles McMillan released a podcast on the issue, also available as of yesterday – You that podcast is available here. As he has said, “housing has always led this nation out of economic downturns, and can do so again.”

If you want to help, there is a video and message available along with an easy form to fill out to alert your representatives of your support. Also, it is not too late to take advantage of or tell a friend about the current tax credit and low interest rates for homebuyers.

Austin area home sales pending to close in the month of September are up 10% from a slow August, the Austin Statesman reports. Should the almost 2,000 transactions go through, September’s home sales for the city will be 18% higher than September 2008.

This is a positive return from August, which saw home sales down 10% from August 2008, and down 11% from Austin’s strong July. While home sales were down, median home prices took less of a fall, at 4%.

BBVA Compass bank economists are predicting a return to growth for the State of Texas in 2010 - partly because of the stabilizing housing market in this region, according to their chief economist Nathaniel Karp. They predict a 4.5% increase in home sales for 2010 (along with a 1.2% increase in jobs and a 1.7% increase in gross domestic product).

There has been a lot of discussion about the role of the $8,000 first time homebuyer tax credit and its effect on sales. The IRS reports that 1.4 million homebuyers have taken advantage of the credit, and Austin has seen the effect, particularly in homes under $200,000. There has been talk of extending the credit, and some congressional leaders are pushing a six month extension or more, a move the White House is considering. Currently, however, there is no announcement, and the credit is set to end November 30. With how long it takes to process a mortgage application and other pre-closing requirements, buyers must have a house under contract a month ahead of the deadline, ideally even earlier, according to the Washington Post.