New Mexico Business Weekly: The positive effects of the tax credit were seen in May in closed sales of resale homes that rose by nearly 30 percent. For the year, nearly $630 million in closed sales were recorded by the Greater Albuquerque Association of Realtors, a 22.3 percent rise.
“The tax credit did what it was supposed to do. It got people interested in homeownership, and that interest resulted in sales,” said Mark Pando, GAAR’s president. “There was a noticeable dip in pending sales in May, and that could be attributed to consumers racing to get contracts in by the April 30th tax credit deadline.”
Pando describes the next three months as “totally uncharted waters” because the government’s life support measures are over and it’s time for the industry to carry itself. He said it was a great time for the tax credit to end, because mortgage rates are near historic lows and the spring/summer season is the industry’s strongest.
Families looking for homes before the new school season starts in August make the spring and early summer months the industry’s busiest. Pando hopes for consistent sales in June, but predicts there might be a dip.