Good news in the Atlanta real estate market. Atlanta, along with 19 other markets across the nation, saw an increase in home prices in August. From July to August, home prices rose 1%, for a total of 3.3% since June.

It does seem that home prices have been steadily increasing for the past few months, which is definitely a great sign for the real estate industry. However, many economists and housing market professionals feel that the first-time home buyer tax credit has largely contributed to the recent rise in home prices. And, are we looking at a big problem if the tax credit is not extended?

Other good news from August’s numbers is that for the 28th consecutive month, the number of inventory homes declined and builders are not adding to their standing inventory. With more inventory homes being absorbed, the housing market will continue to stabilize. However, the fact that they are not building more spec homes could be indicative of their concerns about what will happen to buyer demand once the tax credit ends.

If you are also worried about what will happen when the tax credit ends, contact your congressman in support for the proposed legislation to extend and enhance the credit.

  • Call your senators and tell them to urge the Senate Leadership to stop playing partisan games and pass the homebuyer tax credit extension and NOL expansion now.  Use the toll-free NAHB Legislative Hotline to be connected to you Senators.  Call 1-866-924-6242 (NAHB).
  • Call Majority Leader Harry Reid at 202-224-5556 or 202-224-3542 and Minority Leader Mitch McConnell at 202-224-3135 or 202-224-2541, and tell them to allow the unemployment insurance bill to advance with the homebuyer tax credit and NOL.

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