Tax Credit effect in Waukesha Home Sales

I was curious how home sales trended in Waukesha with the tax credit expiring so I compared sales from April of 2009 thru the end of June 2009 with the same months in 2010.

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2009
April 1st 2009-June 28th 2009
Waukesha price range $150,000 to $1,000,000
Home Sold 78
Average Starting Price $314,232
Average List Price $271,569
Average Sold Price $262,976
Average Discount from List price $19,656
Average Price drop percent -6.48%
Average Days on market 159
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2010
April 1st 2010-June 28th 2010
Waukesha price range $150,000 to $1,000,000
Home Sold 83
Average Starting Price $274,019
Average List Price $268,558
Average Sold Price $259,522
Average Discount from List price $15,631
Average Price drop percent -5.94%
Average Days on market 108
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Analysis:
I was surprised to find that the numbers of sales did not increase significantly during this period. However, it appears that sellers and listing agents have taken notice of the market decline and dropped their initial asking price by almost 12.7% This in turn has decreased the average days on the market by almost a third! This has also affected overall average discount to sell. This year sellers are taking $3000 less off to sell their home than in years past. This is a good new in our market that although prices are still down, homes are selling quicker, and for less money off than in previous times.

It also appears that the tax credit did not increase overall sales for this period but it did help burn off some existing inventory and reduce the days on the market. Two questions that arise from this:
1. Would people still have bought these homes without the tax credit seeing as list prices dropped over 12%?
2. Since sales did not really increase during the period, did the tax credit just give an artificial bump in the numbers of sales?

All things we need to think about going forward.

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