By JAMES FINK
jfink@bizjournals.com | 716-541-1611

For residential real estate, 2010 was defined by an eight-week surge in late winter and early spring

From March through April, local deals were plentiful as buyers put homes under contract to meet the April 30 federal tax credit deadline. The rest of the year, however, saw some trouble.

"Looking back, it really hurt the year," said Phil Aquila, M.J. Peterson Real Estate Corp. manager and president of Western New York Real Estate Information Systems. "When the tax credit period ended, deals dried up almost entirely."

According to year-end statistics compiled by the Buffalo Niagara Association of Realtors, sales of single-family homes, condominiums and townhouses were off 15 percent in 2010. There were 9,988 deals in 2009 and 8,536 transactions last year.

"Nobody is happy to see sales off by 15 percent," Aquila said. "I'm glad that 2010 is done. It was not a lot of fun."

The total volume of residential sales, at $1.14 billion, was off 10 percent, but the median sale price rose 6.8 percent. It went from $107,449 in 2009 to $114,800 last year.

What skewed the early part of the year was the federal tax credit program: First time buyers were eligible for an $8,000 tax break and move-up buyers got a $6,500 credit. The deals had to be under contract by April 30 and closed, initially, by June 30. As a result of the national closing crunch, the deadline was extended to Sept. 30.

"The tax credit force fed a lot of people," Aquila said.

Monthly residential closing statistics illustrated the impact of the tax credit program. Closings were up 3 percent in March, 1 percent in April, 3 three percent in May and 24 percent in June.

By July, closings were off 37 percent.

In fact, the 1,379 closings reported by BNAR members in June was the single highest monthly mark of the decade. Conversely, the 388 reported closings in February was the lowest.

Aquila said the local real estate market has stabilized since last summer. Examining some preliminary sales numbers, transactions are starting to creep up to more traditional levels.

"Looking into my crystal ball, I think this year will be definitely better than last year," he said. "But I'll be the first to admit we have a long way to go."