Existing home sales in Florida jumped 33% at the end of 2009, making the 16th consecutive month that real estate sales have increased in a yearly comparison. Economists believe that the rise in home sales is due in part to the Federal Home Buyer Tax Credit, which is scheduled to expire in the spring of this year. According to Lawrence Yun, economist at the National Association of Realtors (NAR), “Activity should ramp up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires, and balance should be restored to the housing sector with inventories continuing to decline.”

The median home price for existing homes by the end of last year was $140,400, which reflects a 10% decrease in an annual comparison. With government programs, low interest rates and bargain home prices, home sales should only continue to rise. However, many economists believe that another wave of foreclosures will sweep the market this year at the same time that government programs are scheduled to expire, which will in turn raise interest rates and perhaps home prices. Don’t pass by today’s deals! Now is the time to buy!