The San Diego Union-Tribune reported yesterday that monthly home sales increased significantly in July, up 7.25%. This is the largest monthly increase in 10 years and the best month since August, 2007.
Part of the cause of the increase is thought to be due to first-time buyers who accounted for 1/3 of the purchases. Qualified first-time buyers receive a tax credit up to $8000 on the purchase price of a home, but the credit expires on Nov. 30 unless Congress extends it. It is unclear whether sales will fall when the credit expires.
This is an excellent opportunity for first-time buyers with stable jobs and incomes to get good houses at bargain rates and enjoy the additional benefit of the $8000 tax credit.