September home sales down from August, up from September 2008

A report released Wednesday found sales of new homes were down slightly nationwide in September from August, though home sales increased over September 2008. Similar numbers were seen locally.

According to the Cape Girardeau County Multiple Listing Service -- a real estate advertising service -- 11 new homes in the area were sold in August, three more than in September. That's about the same as in August and September 2008.

Nationally, sales of new homes fell 3.6 percent from 417,000 sold in August to 402,000 sold last month, a report issued Wednesday by the U.S. Commerce Department said. It was the first decline since March.

But September sales of all homes in the area, most of which were previously owned, was up 17 percent compared to the same month in 2008. Nationally, sales of previously owned homes were up more than 9 percent in September compared to the same month last year.

And an increase in the price of previously owned homes sold in the area is giving local real estate agents hope.

"I wouldn't say we've turned the corner, but things are looking better than they did this time last year," said Bill Cole, owner of Realty Executives of Cape County. "Despite the troubles some markets have had in the U.S., we've held our own here."

Cole attributes some of that increase to the first-time homebuyers credit. Those wishing to qualify for the tax credit of up to $8,000 have until Nov. 30 to close on the home. Houses that cost $80,000 or more qualify for the $8,000 credit, while the credit for homes costing less will be 10 percent of the total cost.

"In this economy the first-time homebuyers credit has given our market and many others throughout the country a spark of life," Cole said. "We're getting people in homes by using this program to give them a more affordable way to purchase one."

On Wednesday, U.S. senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.

The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, said a congressional aide, who spoke on condition of anonymity because he was not authorized to publicly discuss the deal.

"For lot of people buying a $120,000 home and getting $8,000 back is a no-brainer," said Paul Kitchen, broker and owner of Prudential Bridgeport Realty in Cape Girardeau. Kitchen serves as president of the Cape Girardeau County Board of Realtors.

"That will be a good help to get us through the winter and maybe that will help us through the spring," Kitchen said ahead of the Senate's decision. "It may be a good program to put in permanently."

The Associated Press contributed to this report.

bblackwell@semissourian.com

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