And The Groundhog Says…

This week our listings saw an average of two showings each which was a bit slower than the prior week’s surge but still about right.   I always tell my seller’s that two showings a week is  good traffic.

Yesterday the groundhog came out of his hole and saw his shadow, which means six more weeks of winter.   Bummer.   So, what does that mean for the real estate market?   Will it be slow for six more weeks until the spring buyers come outside, ready to purchase a home?

They might, but if they wait too long they miss an opportunity to get a tax credit which expires on April 30.   Yesterday, the chief economist of the National Association of Realtors reported on pending home sales nationally.   In his article, Dr. Yun notes that pending home sales surged toward the end of last year, likely because of the first time buyer tax credit that was set to expire on November 30, 2009.   The pending sales indicator has since stabilized but is still well above the levels from this same time last year.   Most likely, we will see a similar surge again this spring prior to the April 30th expiration of the first time and repeat buyer credits.

In my blog last week, I noted that showing traffic has surged.   It has slowed a bit this week, but that could easily due to the snowy weather which just about just down the city of Charlotte for a couple of days.   If the groundhog is correct and the bad weather continues, sales could be sluggish for a few more weeks.    But for the  city of Charotte  that sees 226 days of sunshine a year, I’m hopeful that Punxatawny Phil (who lives in Pennsylvania) is wrong.

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