January-to-June change in the 25-MSA RPX transaction count for each of the last 10 years, says RadarLogic. To illustrate the impact of the homebuyer tax credit on housing demand, the actual change in transactions in 2010 is shown alongside the change assuming June transactions were reduced by 15%. This reduction reflects an estimate of sales that would not have occurred in June without the tax credit.
It’s taken me too long to get to this report from Radar Logic, which compiles and analyzes real estate data, but the information remains pertinent.
Noting distortions from the homebuyer tax credit, President and CEO Michael Feder looked at what seasonal activity in the U.S. would have been without this “pull through” and assumed that 15 percent of the activity (transaction counts) came from this accelerated demand. Says he: Continue reading →