Bay Area home sales rose sharply in some of the area's more expensive neighborhoods in May which may have been fueled by both federal tax credits as well as low interest rates. These factors combined together helped to push the median home price in the Bay area above $400,000 for the first time since the housing market began its downward spiral almost 2 years ago.
Last week the San Diego real estate research firm MDA DataQuick reported that first-time buyers found fewer foreclosed homes for sale in the region last month. This decline in bank-owned inventory has helped to increase the median sales price for all property types in the area to hit $410,000 which is up 10.8% from April and 20.1% from May 2009.
May posted a total of 8,264 homes sold which is an 18% jump from April and an increase of 11% from May 2009.
Most likely the surge in sales could be attributed to buyers rushing to close deals before a June 30th deadline which they needed to do in order to qualify for a federal tax incentive.
Many experts fear that after the tax credit surge home sales could fall again and prices may once again slump.