York home sales up 18% for first six months of 2010

 York home sales up 18% for first six months of 2010

CHRISTINA KAUFFMAN The York Dispatch
Posted: 07/12/2010 01:27:46 PM EDT


There were nearly 20 percent more homes sold in York for the first six months of the year, compared to the same six months of 2009.

From Jan. 1 through the end of June, 2,049 homes were sold in York County. That's an 18 percent increase over the 1,735 homes sold for the same period last year, according to data from the Realtors Association of York & Adams Counties.

RAYAC president and realtor Kraig Hursh said the market has been lifted by federal tax credits for first-time homebuyers and repeat buyers who meet certain criteria.

June was the last month during which numbers were noticeably affected by the tax credit, he said. New federal rules extended the settle-by date for tax credit recipients from the end of June to the end of September, but most of the buyers have settled already, Hursh said.

While more homes were selling, the median sale price dropped by $8,900, from $158,900 to $150,000.

Hursh said the tax credit likely factors into those numbers as well, because first-time homebuyers were flooding the market to take advantage of government money. First-time homebuyers typically purchase homes in a lower price range.

Optimistic: Tax rebate recipients had to have signed their contracts by the end of April, but Hursh said he's optimistic the market will continue to rebound despite the federal incentive's expiration.

The summer is typically a busy time of year because people want to relocate in time for their children to start the school year in a new district, he said.

Low interest rates and a healthy inventory of homes should at least keep the market steady, with growth possible, he said.

Two weeks into July, which included a holiday, it's hard to discern whether sales are on the rise, he said.

“Things are a little quieter than they would've been two months ago because of the tax credit,” he said. “But July is a big vacation time with Fourth of July.”

Numbers varied wildly from school district to school district, but Hursh said the lack of pattern isn't a concern because it reflects the unique set of circumstances — home inventory and price range — of each area.

The number of homes sold in Dover Area increased by 63 percent, while it decreased by 7 percent in Spring Grove. Hursh said it's likely there were more homes for sale in Dover, possibly due to the recent completion of a development or another market variable.

He said the number of homes for sale in a certain price range can also affect the data, but it's not typically indicative of a larger overall trend. The median sale price in York Suburban jumped by 7 percent, while it fell by 13 percent in Southern.

—Reach Christina Kauffman at 505-5436, ckauffman@yorkdispatch.com, or follow her on Twitter at @dispatchbizwiz.