The Poconos- One of THE TOP 10 PLACES TO BUY A HOME IN 2011

Last decade’s bipolar housing market is over. The ups, the downs, the thrills, the spills — largely behind us. Yes, prices and sales are stuck in neutral in large swaths of the country.

But let’s ring in the new decade optimistically, with Walletpop’s Top 10 List of the Best Places to Buy a Home in 2011. This mostly unscientific and partially biased list is based on a grab-bag of lifestyle priorities and, yes, thorough reporting.

Here we go, in no particular order:

Austin, Texas: Best all-around city
Population: 799,267
Median home price: $122,921

Why here: Texas’ capital and a great college town, Austin is beautiful and the 12th-most-affordable American metro area. Job growth from 2000 to 2010 was 14.1 percent, according to Trulia; unemployment currently is 7.1 percent, compared with 9.8 percent nationwide. The city’s population is growing too. These positive indicators are expected to continue in the coming decade. Fortune 500 companies abound here; it’s home to more than 2,000 tech companies. Home prices are reasonable for the $73,747 median family income and let’s face it, nobody does BBQ better than Texas.

Deerfield Beach, Fla.: Most affordable town with a view
Population: 74,584
Median home price: $89,400

Why here: There may be cities with lower median prices (not many), but I’m guessing you need a down coat to live there. This burg comes complete with year-round warm weather and beachfront properties that not too long ago cost a bundle ($400,000+). It’s close to Fort Lauderdale and Miami, where residents can go for professional sports and cultural events.

Broomfield County, Colo.: Best jobs
Population: 55,000
Median home price: $239,000

Why here: Jobs! It also doesn’t hurt that the county is tucked between Denver and Boulder, so the scenery is nice too. Job growth in this area exploded 50% during the last decade. High-tech giants Oracle, Ball Corporation and VMware employ lots of folks, and IBM and Avaya are nearby. If you’re college-educated, you’re in good company: About 38% of the county’s residents hold a bachelor’s or higher degree, according to the Broomfield Economic Development Corporation. If you ski and hike, we’re talkin’ bliss!

Durham, N.C.: Best city to retire in
Population: 223,284
Median home price: $174,900

Why here: Since we’re talking about retiring, first on the list of pluses is Duke University’s renowned medical center. Also, Duke’s popular senior learning program offers 100 courses every term, on campus. So if golf’s not your game, but mathematics is, there you go. If, however, golf is your game — you’ve got that too. Plus Broadway hit shows, concerts and lots of places to hike. Home prices are a steal for what you get.

Woodbury, Minn.: Best place to raise kids
Population: 58,515
Median home price: $245,000

Why here: There are so many great places to raise kids, but this suburb 10 miles from St. Paul has a lot going for it. Yes, winters are cold (not a small thing), but it’s Minnesota — we’re talking thousands of lakes. Woodbury has 100 miles of trails for hiking and biking, and is a stone’s throw from thousands of acres of parkland. The schools are great, including the Math & Science charter school. 3M employs multitudes, as does state government. What’s not to like? OK, the winters. Deal with it.

Warner Robins, Ga.: Best military town for the buck
Population: 53,629
Median home price: $124,900

Why here: Located midway between Atlanta and Savannah, Warner Robins’ housing affordability is the big draw. The median price of a home is $110,000, while the median family income is about $63,000. That leaves some extra dough to hit the local aviation museum, motor speedway and golf club. The city’s main employer is the military (home of Robins Air Force Base), bringing engineers and employees from around the globe, so the population is eclectic. The city fared well during the recession.

Madison, Wis.: Best college town
Population: 562,000
Median home price: $199,900

Why here: A gem of a city located between two lakes, Madison is where it’s happening in the Midwest. Home of the state’s capital, it’s got a top-rated, Big 10 university (with all the sports and cultural events that come with it); affordable housing; tons of eateries and shopping; smart people; friendly atmosphere. You don’t have to be a student or the parent of one to buy a home here. A never-ending supply of renters keeps your investment solid. You may end up living here yourself.

Pocono Mountains, Pa.: Best vacation-home location for the price
Population: 340,000 for the whole region
Median home price: $78,000 for Pocono Lake; prices vary throughout the region

Why here: Year-round playground, with skiing in winter, equestrian activities in spring, summertime sailing and hiking in autumn. You can get a two-bedroom home with 1,256 square feet for $99,999 in Mount Pocono; a three-bedroom cottage in 1,255 square feet is listed for $139,000 in Pocono Pines, according to HomeAwayRealEstate.com.

Portland, Ore.: Best city for Gen-Y
Population: 551,302
Median monthly rent: $1,200

Why here: It’s green (literally and figuratively) and it’s gorgeous. Rents are a bit higher, but some big companies pay well, such as Intel, Kaiser Foundation Health Plan, Legacy Health System, Fred Meyer Stores. The attitude is way-laid back and there are tons of venues for merry-making: music clubs, coffee shops and art galleries. When it’s not raining, you can bike through the city, hike Mt. Hood and hit the zillions of hiking trails nearby.

San Francisco: Best city, period, price be damned
Population: 815,358
Median home price: $682,800

Why here: If you have to ask … The Golden Gate Bridge, Golden Gate Park, the Bay, the hills, the views, the museums, street cars, cable cars, clubs, nightlife, architecture, coffee houses, bookstores for bibliophiles (City Lights, anyone?), hiking and biking everywhere, Tony Bennett (OK, just in your head), famous hotels and restaurants. Yes, it’s foggy in summer, but who cares?

Sources, median home prices: trulia.com and zillow.com

Mortgage Rates Hit 40 Year Low

Mortgage rates just hit a 40-year low, and that may be music to the ears of both homeowners and the local housing market.

Even if you just refinanced, rates on 30-year and 15-year mortgages fell to their lowest points in decades.

The average rate on 15-year fixed loans fell to 3.72 percent from 3.75 percent. That was lowest on record dating back to 1991.

“That means for those looking to purchase or to construct a new home, mortgage money just became even more affordable,” said Bob Howes, senior vice president of lending services for ESSA Bank and Trust.

Mortgage buyer Freddie Mac says the average rate for 30-year fixed loans dropped to 4.27 percent, the lowest on record dating back to 1971. That’s down from 4.32 percent the previous week.

The rates provide opportunities even for those who recently refinanced.

“If someone has already (refinanced) a year or two ago with a rate in the 6’s, it’s still time to look at it again,” said Teresa Anthony Yocum, business development and commercial loan officer with Community Bank & Trust. “It’s a great time to buy. It’s definitely a buyer’s market.”

Low-cost money, along with a decline in home values from its peak in 2007, means there’s tremendous opportunity, according to Howes. Those with loans can refinance to lower their monthly payments or shorten the length of their loans.

“Where they are really going to get ahead is if they could cut the term,” Yocum said. “Their payment might be the same as what they are paying now, but they can cut 10 years off the payment of their loan, saving tens of thousands of dollars of interest.”

Vickie Brockelman, owner of Commonwealth Real Estate Your Way, said the rates have to affect the local housing market positively.

“For the first-time home buyer, with the interest rates the way they are, I can’t imagine they can’t help but get into the market at rates lower than they can rent,” Brockelman said.

It’s also an opportunity for someone who bought during the housing bubble of high home prices to catch up. She advises they set their selling price lower and let the current market work for them. “You’ll be buying in today’s market and at today’s interest rates,” she said.

The low rates can even help distressed borrowers.

“It’s an opportunity for sellers under water to get their houses out there competitively and avoid foreclosure,” Brockelman said.

Refinancing usually involves bank fees and title insurance, which make the refinance decision more complicated. Howes said ESSA may waive the title insurance for borrowers choosing a 20-year term or less, and a loan amount of $200,000 or less.

When is it time to refinance? There are on-line calculators like the one on ESSA’s website. Yokum advises borrowers to call their local bank and talk to a loan officer, who can help determine whether it’s worth refinancing.

But wait for lower rates at your own peril.

“Nobody knows where the bottom is,” Howes said. “This may be the bottom. If you delay, you might miss enjoying the lower payment now, in the hope that rates might go lower.”

First Time Home Buyers Stoke Demand for Smaller, Less Expensive Homes

RISMEDIA, September 28, 2010—A growing segment of the housing market—first-time home buyers—are contributing to an increase in demand for smaller and less expensive new homes, according to research from economists at the National Association of Home Builders (NAHB).

Delving into data from the most recent biennial American Housing Survey, which was conducted by the Department of Housing and Urban Development and the Census Bureau in 2009, the study, “Characteristics of New and First-Time Home Buyers,” finds that 41% of the 8.4 million households who bought a home between 2007 and 2009 were first-time buyers.

“Builders are increasingly gearing their homes to the needs of first-time buyers, and we expect the trend to continue in the period ahead as the economy begins generating more jobs and more people in their 20s form households,” said Bob Jones, chairman of NAHB and a home builder from Bloomfield Hills, Mich.

“New homes are a better match for the needs of the population in general,” Jones said. “Compared to what is typically available in the existing housing stock, they are more energy-efficient, easier to maintain and have designs better suited to today’s lifestyles.”

The market share of first-timers was up from 35% in both 2005 and 2007. Although some of the demand was fueled by the initial version of the home buyer tax credit in mid-2008, which was specifically targeted to those buying a home for the first time, the upward trend is expected to continue as children of baby boomers—members of a generation that is larger than their parents’—move into their household formation years in the period ahead.

Although new housing is significantly more expensive than the existing housing stock, 13% of first-time buyers between 2007 and 2009 purchased new homes. By comparison, 17% of all the homes sold during that period were new.

Competing with foreclosures and large house price declines in the existing home market, new homes lost ground disproportionately during the housing downturn, falling from a 21% share of the homes sold in both 2005 and 2007.

The average market value of a new home purchased was more than $315,000, compared to more than $238,000 for existing homes.

First-time buyers for the two years of the study had an average age of 34, compared to 46 for those trading up.

The average income of first-timers was over $67,000, about 30% below the average household income of trade-up buyers of $97,000. About half of the first-time buyers earned less than $60,000.

The household size of both first-time and trade-up buyers has been declining, while single-person households have been on the rise.

First-timers bought homes with an average market value of about $184,000, compared to more than $297,000 for trade-up buyers.

First-time buyers bought homes averaging 1,874 square feet, significantly below the 2,549-square-foot home purchased on average by those trading up. Forty-six percent of first-timers bought homes smaller than 1,500 square feet.

The large majority of first-time buyers—82%—purchased single-family detached homes.

Looking at survey findings on the reasons that buyers chose a particular home, the NAHB study notes that price was the top consideration for 38% of the first-time buyers, followed by the design and layout of the home, at 36%.

On average, first-time home buyers looked at 15 homes before making their purchase; 63% used their savings as the source of the downpayment; and 22% of them had no downpayment. That was down from a peak of 25% in 2007, reflecting a tightening of credit standards in the mortgage market.

For more information, visit www.nahb.org.

4 Reasons Why Buying A Home Now Is Taking Advantage Of An Opportunity Of A Lifetime

RISMEDIA, September 17, 2010—(MCT)—As the economy continues to suffer and home prices continue to fall, numerous Americans across the country are staying away from the real estate market. But, if you are looking to take advantage of the opportunity of a lifetime, now is the perfect time to get off the sidelines. Playing by your own terms may be the name of the game today. Ask for price reductions, improvements, closing costs—whatever—and sellers, who are desperately trying to get a contract, are very likely to work with you, said Jay Papasan, one of the authors of the book Your First Home.
If all the pieces are in place—you’re qualified to buy a home, the purchase makes sense for your situation and you’re prepared to live in the home for at least five years—according to Papasan and the experts at ForSaleByOwner.com, the following reasons should be motivation enough to get you back in the market.
1. You have a large inventory to choose from
In many places it is taking months to sell a home, which is creating a lot of inventory for those looking to buy. A large selection of homes on the market gives buyers more choices and drives down prices as well. And home sellers have gotten the picture—it’s fair to say that home sellers have become “increasingly desperate,” Papasan said. “People who have had for sale signs in the yard for six months are starting to become in tune with the reality of the situation,” he said.
2. Builders are offering big discounts
Homebuilders are getting even more aggressive with their pricing today. In fact, Eddi Fadel, author of Don’t Rent, Buy! recommends looking at completed new homes first because builders are offering such steep discounts. Plus, you’d have a warranty not only on the home itself, but also on the home’s appliances, he said. “Builders want to save their credit, save their brand, save their reputation and clear out inventory,” he said. “They can go buy cheap land today with that cash.” His advice: Walk in with a preapproval for a mortgage, make an offer, then walk away without making a deal if you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get away.
3. Mortgage rates are historically low
It’s not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. In fact, according to Bankrate.com’s weekly national survey, mortgage rates moved lower this week, with the average conforming 30-year fixed mortgage rate retreating to 4.54%. Rates on the popular 30-year fixed-rate mortgage came in at 4.54%; 15-year fixed-rate mortgages were down to 4.00% and 5/1 ARM mortgages were as low as 3.78%. But low rates don’t mean lenders are handing out mortgages easily. You’ll still need good credit, a substantial down payment and a willingness to document your income in order to qualify for these great rates—if you can qualify at all. In addition, low mortgage rates serve as an equity shock absorber. When buyers borrow at today’s record-low rates, they start building equity as soon as they close. This allows new homeowners to have a little give to absorb any ups and downs as housing market continues to gain traction.
4. Houses are in move-in condition
Many homeowners have decided to wait out to the market and instead stay in their current home and take care of home improvement projects to make the home feel like new again. Because of this, many homes coming onto the market today are in good condition and ready for buyers to move in.
2009, MarketWatch.com Inc.
Distributed by McClatchy-Tribune Information Services.

Lowe’s, REbuildUSA Launch Program to Support FHA Streamlined 203(k) Loan

RISMEDIA, September 15, 2010—In today’s housing market, many homes for sale are in need of repairs and renovations. The FHA Streamlined 203(k) program helps add money into a mortgage for repairs and renovations. Lowe’s and REbuildUSA are partnering to bring a national in-store program offering customers a one-stop destination for all of their repairs, renovation products and services needs.
“Homes needing renovation are typically the very best buys available; however, most prospective buyers have no idea how to finance both the purchase of the home and the renovation work required,” says Dennis Walsh, CEO of REbuildUSA. “The FHA Streamlined 203(k) offers a competitive solution. At the same time, millions of current homeowners could also benefit from this program that offers excellent rates and the ability to make improvements to their homes. We’re excited to partner with Lowe’s to make use of the Streamlined 203(k) much easier than ever before.”
The FHA Streamlined 203(k) renovation loan program provides funds for both the purchase and renovation of eligible homes packaged into one mortgage loan. Once the purchase of the home is closed, renovation funds are held in escrow to pay for pre-determined renovation work done by approved renovation contractors. There were approximately 21,000 FHA 203(k) loans in 2009, including Streamlines.
To that end, most recently, Lowe’s added preferred lending partner Bank of America, which will help coordinate financing options for both renovations and home purchase with renovations through the Streamlined 203(k) loan, increasing the Lowe’s stores footprint with Bank of America’s locations.
“Lowe’s is working with REbuildUSA to be the home improvement solution for products and services required by a Streamlined 203(k) loan,” says Mark Malone, vice president of consumer marketing for Lowe’s. “We can help facilitate the needs of home buyers acquiring distressed properties and facilitate the process of getting their projects done.”
And for the industry’s top leaders, they believe this announcement is coming at just the right time.
“Every real estate professional needs to know about this great opportunity in today’s market,” says Dave Liniger, chairman and co-founder of RE/MAX LLC. In fact, Liniger recently presented the REbuildUSA program to RE/MAX agents during a live broadcast via RE/MAX University.
“[This program] is nothing less than the future of real estate,” explains Ed Krafchow, president and CEO, Prudential CA/NV Realty. “If you’re serious about success in this business, you’ve got to get involved in this ground-breaking program.”
Specially trained Lowe’s associates in stores across the country, except in Texas, can help the customer plan the project and select products and Lowe’s independent subcontracted installers can handle the installation. The program allows Streamlined 203(k)-qualified customers to have a huge selection of products and services under one roof, and it gives customers the ability to immediately improve their homes by adding equity with the repairs and renovations.
Concludes Alex Perriello, president and CEO of Realogy Franchise Corp.: “REbuildUSA is a concept whose time has come and will have a positive impact on the real estate industry and homeownership in America.”
ABOUT LOWE’S
With fiscal year 2009 sales of $47.2 billion, Lowe’s Companies, Inc. is a FORTUNE® 50 company that serves approximately 15 million customers a week at more than 1,700 home improvement stores in the United States, Canada and Mexico. Founded in 1946 and based in Mooresville, N.C., Lowe’s is the second-largest home improvement retailer in the world. For more information, visit Lowes.com.
ABOUT REbuildUSA
REbuildUSA™ is dedicated to “rebuilding America one dream at a time.” Its industry leading 203(k) Specialist designation training, membership support, lead generation, marketing solutions and exclusive online Project Portal™ fulfillment platform help consumers, lenders and real estate professionals leverage the power of the U.S. Government FHA 203(k) Home Purchase and Renovation Loan program. The parent company, Dennis Walsh & Associates, Inc., has delivered cutting-edge education and sales and marketing solutions to more than 80,000 associates of the world’s leading real estate organizations since 1988. REbuildUSA™ is proud to work with Lowe’s as its home improvement partner, Pillar To Post as its home inspection partner and a who’s who of the nation’s most successful real estate organizations and leading mortgage lenders. As members of REbuildUSA™, these industry leaders are able to more effectively open up many more home ownership opportunities and stimulate the economy while improving homes and communities across America.
For more information, http://www.REbuildUSA.com.

Survey Says.. Homebuyers Are Ready To Move From The Sidelines

RISMEDIA, August 30, 2010—Are more Americans positioning themselves for home purchase? Although May’s data showed that home sales were down 26.8% as the home buyer tax credit concluded, a new survey conducted by Relocation.com suggests some families are opting for renting while they research—cash in hand—for deals on a new, more desirable home in their area.
Among the key findings of the survey: Of the 60% of individuals moving into rentals, 24% were previous homeowners who are renting temporarily while they look for a new home to purchase. Underscoring this finding is the fact that for many of these families, foreclosure was not the reason for moving—in fact, the number of consumers who moved due to foreclosure dropped by 70%.
Furthermore, many of these families stayed in the area (one in three made a short distance move of 100 miles or less), opting to remain in a location where they already know their schools, shopping districts and prime neighborhoods.
“While the housing market continues to flux from month to month, we’re seeing strong, continued interest as consumers looking to move start their research with us,” said Relocation.com Chairman and Founder Sharon Asher. “These findings suggest that more Americans may be poised to re-enter the housing market this year.”
The Relocation.com survey was conducted in early June 2010 and is a continuation of consumer surveys conducted since March 2009 to gauge moving and relocation attitudes and behaviors.
For more information, visit www.relocation.com.
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Some Buyers Are Holding Back, but Market Offers Bright Spots Too

RISMEDIA, August 27, 2010—(MCT)—Everywhere you look, July was not ideal for real estate—that’s one thing on which the economists and the statistics agree. Sales figures released recently for the first month in 19, not invigorated by government tax credits, offered a poor prognosis for the housing sector.
Nationally, sales of previously owned homes plunged 25.5% from July 2009—numbers the National Association of Realtors said had not been so low since 1999. Single-family home sales were at their lowest since May 1995, during the last housing bust.
Wall Street took the announcement by the Realtors’ association badly, and at the close of the trading day, the Dow was down 133.96 points.
“We knew that there would be payback for the government’s incentives but we didn’t think it would be so bad,” said Joel L. Naroff, of Naroff Economic Advisors in Holland, Pa.
The end of the tax credit “hit with full force” in July, said economist Nigel Gault, of IHS Global Insight in Lexington, Mass. “The most worrying feature of the recent housing data is the absence of evidence of any underlying improvement in sales,” Gault said. “All of the action earlier this year appears to have been driven by the tax credit. Mortgage applications for purchase have been moving sideways since June, even as 30-year mortgage rates have headed into the low 4s.” A sustained housing upturn “will depend on an improvement in the jobs market, which at the moment is slowing down rather than gathering pace,” he said.
Realtors’ association economist Lawrence Yun acknowledged the downturn, but also offered perspective.
“Since May, after the April 30 deadline, contract signings have been notably lower,” he said, “and a pause period for home sales is likely to last through September.”
Still, Yun said, annual sales are expected to reach five million in 2010 because of the healthy activity in the first half of the year. “To place that in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years.”
Thanks to the tax credit, home values have been stable for 18 months, Yun said.
In July, the nation’s median price rose 0.7% over July 2009, to $182,600. The median is the middle value; half the homes sold for more, half for less.
Yun insisted that record-low mortgage interest rates, now averaging 4.5% would encourage the wary to get back into the hunt.
In fact, rate-conscious buyers are just about the only ones in the market these days. They waited for rates to dip even further, more eager to save thousands over the life of their mortgages than to snag a one-time tax credit available only to qualified buyers.
Michelle Nnolum recently closed on her first home, a condo purchased for $195,500 with a $5,500 seller’s assist at Chanticleer in Cherry Hill, N.J. She signed the agreement of sale in July. “I never thought I could qualify to buy, but I kept hearing about these low rates,” said Nnolum, whose home-based business, ClassiFit, does custom alterations of gowns and evening wear.
She looked at four houses for sale with her agent, Giovanni Judenic of Long & Foster, before settling on a completely renovated two-bedroom, 2 1/2-bath condo that had been on the market for just three days.
Her rate: With a 20% down payment, 4.75%. But thanks to a “buydown” incentive from the mortgage broker, she will pay 3.75% for the first year, “which equals what I was paying for rent,” she said.
“I think values will go up,” said Nnolum. “With 20 percent down, I’ve started with a lot of equity already.”
Chris Bolli of Bristol, Pa., is equally interest-rate-conscious as he searches for a house.
A Navy veteran who sells prosthetic devices to area hospitals, first-time buyer Bolli has been looking for a three-bedroom, two-bath house with a garage for six months.
“Buying a house is a long-term investment, and finding the lowest fixed rate over 30 years is more important than $8,000 up front,” he said. “I wasn’t going to be pressured into buying something.”
One problem with his search has been that “sellers haven’t caught up yet with the realities of the market,” said Bolli, who considers $250,000 the middle of his price range.
“We looked at a house in an area where renovated houses were selling for $270,000, but the owner, who bought at the height of the market, wanted $380,000 for a house with 1950s fixtures,” Bolli said. “It wasn’t worth it.”
Anthony Sanders, professor of real estate finance at George Mason University in Virginia, said many sellers were “holding on to their overpriced housing, hoping that they won’t get damaged even further. There’s been a change in consumer psychology, and it’s difficult to reverse.”
Naroff, who recommends waiting until the fall before making judgments, said that “unless households and businesses have confidence about the future, they are not going to buy homes or invest, regardless of the interest rate.”
Housing’s double dip should not cause a double dip in the broader economy, said Mark Zandi, chief economist at Moody’s Analytics.
“The recent weakness in housing won’t be severe or long enough to undermine the rest of the economy,” Zandi said. “It will be close, however, and it will be very uncomfortable through the remainder of the year. Nothing works all that well in the economy when housing is struggling.”
(c) 2010, The Philadelphia Inquirer.
Distributed by McClatchy-Tribune Information Services.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Enery Star Rebate Program

ENERGY STAR Rebate Program

Looking for a new furnace, water heater or boiler? Now may be the time to purchase one. The US Department of Energy is currently providing funding to promote a consumer rebate program for qualified ENERGY STAR appliances. Under this program, consumers receive rebates to purchase energy conscious appliances in hopes of replacing less efficient products.

In the state of Pennsylvania, the savings range from  $100 – $500 on gas storage or tankless water heaters, oil or gas furnaces, and oil or gas boilers. There are specific requirements for eligible products so before making a purchase, please confirm funding and requirements at www.paheatingrebates.com.

The rebates are scheduled to begin April 21, 2010 and will be offered for a limited time only. The rebate program will end when funds run out.

For more information on energy efficiency in general, visit the ENERGY STAR Web site: www.energystar.gov.

Existing Home Sales Roar in April

YORK (CNNMoney.com) — Existing home sales soared in April as home buyers scrambled to claim the tax credit that expired at the end of the month, according to a real estate industry report released Monday.

The National Association of Realtors reported that existing home sales jumped 7.6% last month to a seasonally adjusted annual rate of 5.77 million units, up from the upwardly revised rate of 5.36 million in March. Sales year-over-year were up 22.8%.

The gain was widely anticipated, but still beat forecasts. Analysts surveyed by Briefing.com were looking for resales in April to rise to an annual rate of 5.65 million units.

“The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” said Lawrence Yun, NAR chief economist. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”

The home buyer tax credit, which expired April 30, pushed sales up during the month since buyers had to sign contracts by the end of last month. First-time home buyers qualified for a tax credit up to $8,000, while those trading up could score as much as $6,500.

Despite the termination of the tax credit, NAR president Vicki Cox Golder also anticipates buyer traffic to hold up in May and June.

“Some realtors tell us they are very busy with clients who are entering the market now as a result of improved conditions, while others are welcoming a slowdown from frantic market conditions in recent months,” she said.

Price and inventory: The NAR report showed that the median price of homes sold in April was $173,100 in April, up 4% from a year ago. About a third of homes sold during the month were distressed properties.

Total housing inventory rose 11.5% to 4.04 million existing homes for sale. That represents a 8.4-month supply at the current sales pace, up from a 8.1-month supply in March.

Yun said that although inventories remain higher than normal, the house pricing correction is nearly over.

“In fact, a majority of the markets have seen price gains lately,” he added. “A return to old-fashioned responsible lending and buying will help the housing market avoid disruptive and painful bubble-bust cycles.”

Sales by property and region: Sales of single-family homes rose 7.4% in April compared to the prior month, while condominium and co-op sales spiked more than 9%.

The Northeast fared best last month, with sales surging 21.1% to an annual level of 1.09 million units in April, which was 41.6% higher than a year earlier.

Resales in the Midwest climbed nearly 10% last month, while they rose 8.6% in the South and 6.2% in the West.

Pocono Housing Market Showing Some Signs of Life

Home sales in Monroe County rose during the first quarter of 2010, the first increase in first-quarter sales since 2006.

Although the growth was just 8 percent, that compared to a 24 percent collapse last year.

The boost might be driven by a soon-to-expire tax credit for home buyers, according to Lisa Sanderson, president of the Pocono Mountains Association of Realtors and an agent with Real Living Ritter and Co. Real Estate.

First-time home buyers and those trading up for a more expensive home are eligible for tax credits of up to $8,000, but that is set to expire soon. To take advantage of the incentive, you have to be under contract by the end of April and close by the end of June.

Although there’s been speculation about whether the tax credit would be extended, Sanderson said, “We don’t usually know until the last minute.”

While home sales climbed, prices continued to fall.

The average price of a Monroe County home sold in the first quarter of 2010 was $145,449, down 5 percent over the same period last year.

“There probably won’t be any increases in prices for a while. But having more houses sell is probably the first thing to getting things back on track,” Sanderson said.

Home sales continued to fall for the year in 2009. A total of 1,828 homes sold all of last year, according to Pocono Mountains Realtors Association statistics. That was 7 percent less than 2008.

Sales of foreclosed homes jumped 27 percent last year, following the trend of rising foreclosures. It also is a reflection that the market is clearing out many of those distressed homes from the local inventory.

First-quarter sales in Monroe reached its peak in 2006 with 950 homes sold. That figure has been declining over the past three years, as the economy began to slow and the sub-prime mess threw the housing market into chaos.

Pike and Wayne counties also saw home sales rise during the first quarter. Sales in those two counties are combined by the Pike-Wayne Association of Realtors.

Combined sales in the two counties increased 19 percent, to 232 homes sold in the first quarter. Sales fell 26 percent last year in the same period, to 209.

But the residential real estate market in the Pike Wayne Association of Realtors coverage area had a smaller foreclosure problem, with 19 percent of all homes sold having been foreclosures in each of the first quarters of 2009 and 2010.

The average price of a home sold in that period was $179,893, or about 24 percent higher than in Monroe.

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