Across the country there was an increase in homes sold in April over March of this year. According to an article in the Wall Street Journal this was due to a number of factors which I have discussed here in earlier Laurel Real Estate Blog.
Lower prices have contributed to more first time home buyers jumping into the market. Prices have been driven down by distressed properties for sale. Buyers are jumping on good deals. The large inventory of homes is also a contributing factor. Sellers have to make their homes competitive in a market full of choices for buyers.
Another reason sales are up is the government $8000 credit for first time home buyers. Purchasing a home has become more affordable, because buyers know they will be reimbursed for some, if not all of their initial investment. In some cases, the $8000 credit is coupled with a down payment grant that makes it appear the buyer is actually getting paid to buy a property.
Finally, something I have mentioned repeatedly here on the Laurel Real Estate Blog, historically low interest rates are driving home sales. Most buyers can get an interest rate below five percent.
In Laurel Maryland zip code 20707 the number of homes sold increased in both March and April of this year. In April home sales were up over 37%. In March home sales were up a 200%!
Laurel medium home prices dropped in April over 17%. In March of this year, medium home prices dropped 20%.
So Laurel Maryland’s dropping home prices and rising sales is consistent with the rest of the country.