Year Over Year Home Sales Slide
The graph below measures what we refer to as the “Year Over Year” Home Sales Report. It measures the number of home sales each month and compares it with the same month from the previous year. Thus, if the line is upwards, the month from the current year saw more home sales than the same month from the previous year.
December home sales were down nearly 40% from December of 2009, and it was the sixth straight month of year over year declines. Simply put, every month from July through December of 2010 saw fewer home sales than the same months from July through December of 2009.
The 2009 sales were given a boost by the Homebuyer Tax Credit, which mostly concluded its impact on the market by the end of June in 2010, the last month to show a year over year gain.
Ultimately, this means that “giving away tax dollars” did not really start a housing recovery. It could mean that many of the first-time homebuyers who would have purchased in 2009, 2010, and 2011 did so early in order to take advantage of the credit.
But these first timers have been consumed from the market, and we now have to rely on people who presently own a home and need to sell it first.