The new year will come with a good start for both existing homeowners and first time home buyers. For the first time, existing homeowners are now eligible for up to a $6,500 tax credit if they purchase a home by the end of June 2010, but they must be under contract on this home by the end of April and must have owned their current home for a minimum of five years. The first time homebuyer extension has also been extended for the same time frame.

Additional statistics for the past month for the Atlanta Metro area:

• There were 4,532 proposed closings. This is 10.3% higher over last year and after the lags are reported the percentage increase could be as high as 15%.
• There were 4,932 expired listings which is 2,500 lower than the previous year and the greatest year-to-year monthly drop.
• Average Sales Price of $193,995
• The lowest days on the market for the past the past year, with an average of 98.4 days.

There are several positive trends to report:

• Interest rates continue to be near an all time low; however, they have started to rise slightly since the beginning of December.
• First time homebuyers or those who have not purchased a primary in the past three years can receive an $8,000 tax credit by purchasing this year. The program dates have been extended as well, get the full details here.
• Inventory has dropped to its lowest since February 2006, with only 37,103 homes on the market.
• Months-supply of homes is moderating, as inventories decline. Expect some home auctions to clear out a lot of the high priced new construction that is not selling.

Although we are in a challenging market with constant unenthusiastic news about the economy, it does not change the fact that people either want or need to move. Consequently, I believe that the sale of a property can be realized given the right marketing strategy and real estate professional.

Be sure to Sign Up for our Newsletter for future market updates for your area!