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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Robert Frank, City Editor frank@heraldnet.com   Published: Friday, November 6, 2009 Snohomish County home sales shoot up 35% Home buyers hurry to beat a deadline for a federal tax credit that is now likely to be extended. By Mike Benbow Herald Writer EVERETT — Home sales in Snohomish County exploded last month as buyers rushed to beat a deadline that they thought might end an $8,000 tax credit. Home sales in the county rose 35 percent from a year ago and pending sales ballooned 91 percent as first-time buyers hurried to close their deals by the end of this month, the Northwest Multiple Listing Service reported Thursday. “I had my best month in 20 months,” said Meribeth Hutchings, a Windermere broker in Lake Stevens who is also on the board of the listing service. She added that Thursday's House vote to extend the first-time buyer credit and expand it to other people was great news. “It certainly takes the pressure off,” she said. The extension was approved Wednesday by the Senate, Thursday by the House and is expected to be signed today by President Barack Obama. It would: Extend the first-time buyers, $8,000 tax credit from Nov. 30 until April 30 for a purchase agreement. Buyers would then have until June 30 to close the sale. Add a $6,500 tax credit for buyers who have already owned a home for the past five years. Those buyers also must agree on a deal by April 30 and close by the end of June. “I think that's going to keep the market going strong,” said Bob Maple, a broker for John L. Scott Real Estate in Everett. “It will attract buyers until April and put us into the spring market, so I think we'll be fine.” Hutchings agreed. “I think the market will stay steady now through what could have been a very cold winter,” she said. The real estate industry has suffered through a two-year slump, so October's sales and the prospect of more to come were good news. “These days, if you don't lose money in a real estate-related business, it's considered a success,” Hutchings said. The real estate sector in Snohomish County has shown signs of improvement, but not as much as some areas of the country where home prices are rising. Locally, there are few new homes being built and the prices of existing homes are continuing to fall. The combined median price for single-family homes and condominiums in the county fell 11.67 percent last month to $280,000. A year ago, it was $317,000. Median means half the homes sold for more and half sold for less. Hutchings said the lower prices and the tax credit have helped many young buyers. “They've been getting into some beautiful homes,” she said. “In some cases they have better homes than their parents live in.” Allowing existing homeowners to get a tax credit should help those parents and others if they want to move up, Hutchings said. “It's a great time to be a move-up buyer,” she said. “The $500,000 home they wanted to buy last year is now a $450,000 home.” The tax credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000. The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days. The Associated Press contributed to this story. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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