As expected, the homebuyer tax credits have affected sales over the past year chiefly near and below the median market price. Not o nly were those properties the most likely targets for first-time home buyers, but an $8,000 “rebate” is worth twice as much, percentage-wise, on a $160,000 purchase than it is on a $320,000 home. It’s not too surprising then, that that’s where we have seen the most dramatic decline in demand in recent weeks. Here is a look at how the price distribution of home sales has changed in the Austin/Central Texas area over the past year (click images to enlarge):
The $500,000-and-up went from 7% of the Austin/Central Texas single family market a year ago to 12% in the last month!
Clearly, July sales nationwide reflected the expiration of homebuyer tax credits, and the decline in demand seems to have surprised some folks. This performance in upper price range properties is truly impressive. It’s still a great time to buy real estate, especially here in the Austin area.