Home sales at lowest levels in five years - Birmingham Business Journal:

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While real estate agents expect the market to see increased activity this year because ofthe $8,00o0 tax credit, insiders predict sales levels won’t reacbh the highs of years Nor should they, said Rick Heben, general manager of Coldwell Banker Heritage Realtors. “Selling 15,000 homesd a year was We know that because of the number of Heben said. “It was artificial.” With lowerec lending restrictions and plenty of financing peoplewho didn’t have adequate fundes were purchasing homes they couldn’t afford. Agentx said the number of sales has returned to 2003 levele ofabout 11,000 or 12,000 per closer to a “normal” level.
But the slowdown has been January saw the fewest number of homews sold in the Dayton area in five with 520 homeschanging ownership. November and Decembere also posted the lowest sales transactions for their respectivr months in the pastfive years. Last 630 homes were sold, which represents a nearly 30 percenty drop from November of a month that saw884 sales. “Businesws wasn’t too bad until the middle of last Going bypure numbers, it was horribl when October rolled around,” said Steve Weiser, team leadeer and broker for in Beavercreek.
He said the Daytob area won’t go back to the highsa of 2005, but the tax credit for first-time home buyerz should help lower the amount of inventorh onthe market. In there were 8,300 homes on the While the figure is lowerd thanlast January’s inventory, the slower sales pace means those homes represent a supply of 16 months, up from 14 monthx last January. The balance between a buyer’ws market and a seller’s market is generallyy thought to bea six-month supply of That way, neither the buyer nor the sellerd is in a position of power when it comes to closinf a deal.
Debra owner/broker for in Beavercreek, said it is nice to help people buya home, but the real help will be gettinf homes off the market, freeing others to buy. “Thed first one has to happen beforde anything elsecan happen,” White said. “Real estated is like dominos, if they (first-time home buyers) don’f buy, no one else can.” Bill Rogers, vice president of Sibcg Cline’s , said with the slow down, many real estatew agents have either put their licenses on hold or left thebusinesa altogether. “Hundreds have dropped Rogers said.
White said with agents either out of the game or focusint lesson work, the tax credit may not have the same impactr as it would if the market wasn’t so sour. Bob Jones, communications coordinator forthe , said the numbet of members fluctuates from month to month and has been as low as 2,3009 and as high as 2,800 in the past five As of January, there were 2,683