Phoenix AZ Urban

While existing home sales were up in November over October by 7.4%, new home sales were down 11.3% according the Census Bureau.  They had expected new homes sales to go up in November but this could be an affect of the First Time Home buyers Federal Tax Credit.  To qualify for the tax credit you have to have closed on the purchase by November 30th.  New homes can take 3 to 4 months to build and close so it would appear many First Time Home Buyers went to the existing market for low prices and to qualify for the tax credit.  As nice as a new home can be there are many existing homes on the market that may need a little work and the tax credit can certainly help that.  Also, many new homes in the Phoenix area are out in the suburbs and many people are moving back into the city.