Such improvements in housing and manufacturing are driving the early stages of the economic recovery, according to a Federal Reserve survey released Wednesday, The reported.
The Fed's latest snapshot of business conditions nationwide found "many sectors" of the economy either stabilized or logged modest improvements over the last six weeks, according to the AP.
"There's been a lot of rain, but sunshine is on the way," said Tina Smith, president-elect at the Temple-Belton Board of Realtors. "I'm very pleased. October and November are looking good for sales."
For the second consecutive month, local home sales have surpassed that same period last year.
According to the Temple-Belton Board of Realtors:
n Home sales jumped to 156 in September, up from 136 in September 2008.
n August 2009 sales - 179 - were significantly better than August 2008 - 153.
The number of pending sales (another way to measure the housing markets' health) are also up. The Temple-Belton Board of Realtors reports 98 pending sales at the end of September 2009, more than double for the same month last year - 43.
The average home sale price in the area, though, fell to $129,557, down from $136,865.
Dr. James Gaines, a research economist at the Texas A&M University Real Estate Center, said Texas had a decent month statewide.
"Most of the local markets are coming in very similar in terms of volume and prices, so you guys are not alone. We can only speculate how much of this might be attributable to the tax credit, stimulating a lot of first-time homebuyers to come into the market. An $8,000 credit is a pretty good little incentive."
Gaines also attributed low interest rates for the surge in home sales.
"We had a very good break on interest rates. For a good part of the month, interest rates hovered right at 5 percent and … toward the end of the month went a little below 5 percent."
Temple-Belton's drop in the average home sales price should not be misunderstood as a sign this is a buyer's market, Gaines said. Rather than holding out for a better deal, buyers should act now and capitalize on the low interest rates.
"There is no point waiting for what might be a relatively small decline in the property value, if it happens at all, as opposed to going ahead and taking advantage of the low interest rates right now," Gaines said.
There's been concern among private economists and some lawmakers that recent gains in housing will fizzle out when the $8,000 tax credit ends. It is slated to expire Nov. 30, although some in Congress are mulling an extension, according to The .
The first-time homebuyers tax credit could be extended, but waiting to see if that happens is a risk. Gaines said the odds are about 50-50.
"Who knows? There are a number of reasons why you would suspect it would (be extended) and there are other reasons why you would expect that it wouldn't," Gaines said.
Rather than taking that risk, local real estate agent Jared Bryan, and owner of Bryan Properties in Morgan's Point, said although the window of opportunity is almost closed, if you act now it's possible to take advantage of the first-time homebuyers program.
"Time's running on out on that because you have to close by the end of next month," Bryan said.
"You know you can have $8,000 today if you do it," Gaines said. "I'd caution anybody to say 'hey, they're about to expand it' … and you missed out on your chance for $8,000. Bird in the hand, you know."
