Home sales dipped last month across the nation. However, the number of homes sold in Northwest Indiana actually rose compared with numbers posted in July and are close to June's figures.
Those numbers reflect that the real estate market may have hit bottom and is headed up, according to one local Realtor.
The total number of residential sales in the five-county area dropped nearly 16 percent over August of last year, according to according to data from the Greater Northwest Indiana Association of Realtors. But the number of homes increased to 719 from July's total of 649. In June, the number of homes sold in this same area was 729.
"We're experiencing gains over the previous month," said Nancy Echterling, a broker with Coldwell Banker in Highland. "It's not a gain compared with our high for sales in 2007, but the rate of decline is dropping."
Also of note, Echterling said, is the price paid for homes in Northwest Indiana. While the price declined, it dropped at only 2.7 percent, one of the lowest declines in the last two years.
"Actually we had a much larger drop in prices, 15 percent, in 2007 to 2008," she said. "This small decline in price may indicate that we've reached the bottom (in pricing) and may be going up."
Nationally, home resales declined unexpectedly in August after a four-month streak of gains. Sales dropped 2.7 percent to a seasonally adjusted annual rate of 5.1 million homes sold in August. Those numbers were 5.24 million in July, the National Association of Realtors said Thursday. Compared with a year ago, however, home sales are up 3.4 percent.
The results surprised analysts, who had expected sales to rise to an annual pace of 5.35 million, according to Thomson Reuters.
"We suspect it is just a temporary blip in the improving trend rather than a sign of renewed weakness," wrote Paul Dales, U.S. economist at Capital Economics.
The wild card is the $8,000 tax credit for new homeowners, which is set to expire on Nov. 30.
First-time buyers have purchased almost one in three homes in August. Together with investors snapping up foreclosures, they have provided most of the momentum in the market this year.
Echterling said locally, that tax credit has boosted home sales, too. But time is running out to purchase a home in time to close before Nov. 30.
"If you're in the market to buy a home, you need to hurry. To close by the deadline, you need to have found your home at the latest by the first two weeks of October," she said.
"We're seeing a higher showing volume as people are trying to get in by that deadline."
The Associated Press contributed to this story.
NWI homes sales mixed
Single-family home sales
August 2009: 719
July 2009: 649
Change: Up 9 percent
Total sales volume
August 2009: $ 99,489,115
July 2009: $94,004,664
Change: Up 15 percent
