Home sales in Central Texas surged 27 percent in March compared with the same month last year, pumped up by buyers seeking to take advantage of a federal homebuyer tax credit that expires April 30, the Austin Board of Realtors reported Tuesday.

Real estate agents sold 1,784 existing homes in March, compared with 1,404 a year ago.

The median price remained stable, at $180,000, the board said.

Though we've seen increases in year-over-year sales volume consistently in recent months, it's likely this substantial increase in volume is related to the impending expiration of the homebuyer tax credits on April 30, said John Horton, chairman of the Austin Board of Realtors. What's most encouraging, however, is that in the midst of this increase in sales volume, our real estate values have remained steady, which bodes well for the long-term value of real estate in Austin.

The tax credit — $8,000 for first-time buyers and $6,500 for repeat buyers — has been credited with spurring tens of thousands of sales across the country in recent months. Some housing experts have expressed concern that sales could slow when the credit ends. Homes must be under contract by April 30, with the closing done by June 30, in order to qualify.

For the first three months of the year, 70 percent of Austin-area sales have been for homes priced at $249,999 or less, where first-time buyers would focus.

Other Texas cities also have seen increases linked to the tax credit. Sales were up 28 percent last month in the San Antonio area but only 11 percent in Dallas and Houston.

From January through March, home sales in Central Texas were up 12 percent.

Sales of condos and townhouses were particularly strong in March 2010, with the 215 sales representing a 129 percent jump compared with March 2009. The surge follows sustained increases in demand for condos and townhomes since September 2009, and a year-to-date increase of 86 percent.

A softer condo market at the beginning of 2010 provided a good opportunity for buyers, and we are now seeing the results with an increase in activity, Horton said. Condos can be attractive properties for first-time homebuyers, so it's possible this increased demand is also related to both the first-time homebuyer tax credit as well as an increased supply of condos in Austin in recent years.

Horton said March 2010 also marked the second consecutive month that homes had sold faster than during the year-ago period.

In March, homes were on the market an average of 73 days, down from 88 in March 2009. During that same time, pending sales increased 31 percent to 2,421; new listings were up by 29 percent to 4,170; and active listings rose by six percent to 10,300.

These statistics indicate that demand is continuing to outpace supply, which is encouraging, Horton said. However, no one really knows the full impact of the homebuyer tax credits yet, so we'll look ahead to this summer to determine the sustainability of these conditions.

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