RE/MAX report: Home sales in ‘period of correction’

DENVER, Col. — Now that the Homebuyer Tax Credit is in the rear view mirror, residential home sales are in a period of correction.

It is possible that the credit simply brought interested buyers to the market a few months earlier than they otherwise had planned, according to real estate firm RE/MAX. Indications are that sales may correct further before they return to positive territory. The good news is that home prices appear to be holding steady.

The July 2010 edition of the RE/MAX National Housing Report of 54 metropolitan areas reveals that closed transactions in July were 27.8 percent lower and prices 1.3 percent higher than during July 2009.

“We were expecting to see some pull back in home sales after the tax credit expired,” said RE/MAX CEO Margaret Kelly. “It’s hard to know what will come next in this market, but we’re looking for a return to slow steady growth by the end of the year.”