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Prices of Homes in Government Properties List Rose in Cleveland

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By : John Cutts    99 or more times read
A housing market index updated on June 29 showed that prices of homes in Cleveland, Ohio, including those under government properties list, bank lists and other types of foreclosed property listings, have risen right after the end of the federal government’s tax incentive program.

Cleveland bank owned homes and other types of foreclosed residential properties, and even new residences, recorded higher prices during the period of March to April 2010. Several major housing markets in the area, including the Cleveland-Elyria-Mentor region, posted higher prices when compared with 2009 figures.

According to analysts, the growth of Standard and Poor’s/Case-Shiller Home Price Indices and the rise in the prices of bank owned homes in Ohio, should not be construed as a housing market rebound. They explained that the rise in prices is mainly due to the tax incentives provided to homebuyers which caused a sudden surge in home sales during the first four months of 2010.

According to the National Association of Realtors, more than 8,000 home buyers from Ohio took advantage of the tax incentive and purchased properties from government properties list and other residential property listings. However, a lot of these buyers are facing the possibility of losing their deals if they failed to close them at the specified deadline.

In response, the U.S. Congress has voted to extend the tax incentive deadline up to September 30 to give buyers of new dwellings, and those who purchased homes from foreclosed listings, more time to close their deals. The Senate is reportedly considering passing a similar rule following requests from industry trade groups.

The June 29 index report also showed that Cleveland’s housing market has outpaced the national sector during April. Price index for the city rose by 1.4% during the period March-April, while index prices for 20 major metro areas in the U.S. recorded an increase of only 0.8%.

Homes under government properties list and other residential property listings in Cleveland have shown an upsurge in prices. However, market analysts cautioned that this does not signal a market recovery and is more likely an immediate reaction to the federal government’s tax incentive initiative.

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