Posted on Thu, Nov. 12, 2009

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Home sales up for October

The extension of the $8,000 first-time homebuyer tax credit is credited with an increase of eighteen homes sold over October 2008.

BY BILL WILSON

The Wichita Eagle

More homes were sold in the Wichita area in October than in the same month a year ago, the first year-over-year sales increase since the national economic collapse hit Wichita.

Eighteen more homes were sold in October 2009 than a year ago, according to figures released Wednesday afternoon by the Wichita Area Association of Realtors and the South Central Kansas Multiple Listing Service.

The increase was "definitely expected," said Gary Walker, general manager of J.P. Weigand's residential division, due to the looming Dec. 1 deadline to take advantage of the $8,000 first-time homebuyer tax credit.

And November's sales figures should be even better, Walker said. Sales dipped in November 2008 to a year-low 568 units, a number that should be easily topped this month.

"There was a big surge in business written in August and September," Walker said. "I can only tell you what I see for Weigand on the business written, because that's where you get the best feel for what's happening."

"It's difficult not to be optimistic after the October we had," said Willie Kihle, president of Prudential Dinning-Beard Realtors. "We had a very good October, and it might salvage the fourth quarter."

According to WAAR figures, 746 existing and 94 new homes were sold last month. Compare that with October 2008, when 708 existing and 114 new homes were sold.

However, with the extension of the tax credit and the expansion to include existing homeowners, Walker said sales momentum has slowed.

"Definitely slowed as far as business written," he said. "It's too early to predict, but we could be back to December and January figures.

"The deadline had a lot to do with the sales growth, and we're going into the slow sales time of the year."

Walker expects more existing homeowners to jump into the local market after the credit was expanded.

"Even that part of it, when we'll really see any benefit from that will be after the first of the year."

Kihle agreed, saying he expects more new buyers in the market after the first of the year.

"We're cautiously optimistic," he said. "There should be a lot of people in play now with the expansion of the tax credit, people with homes who thought the tax break wouldn't apply to them."

Reach Bill Wilson at 316-268-6290 or bwilson@wichitaeagle.com.

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