June 14th, 2011 Categories: Market Updates
Last year’s federal tax credit may be long gone, but the effects are still with us when market statistics are reported. As a result, don’t panic – or rejoice – if you see headlines like the following:
- “Contracts in April Down 40% from April of Last Year” (the market continues to crater)
- “Contracts in May up 28% from Last Year” (the market is soaring! yeah!)
- “Sales in June significantly below Last Year” (again, cratering)
In early 2010, inventory was super low, and buyers went a little crazy and rushed to get homes under contract by April 30th. As a result, last year’s monthly metrics were really distorted. The chart below tells the tale. Until we’re well past monthly activity from early 2010, take any headline with a grain of salt.