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The March figures were meager by historical standards, bouncing off an all-time low in February, and analysts said job creation was paramount for the momentum to sustain itself.

“It shows that the tax credit still has some punch, and we will probably see some better sales numbers for April,” said Mark Zandi, chief economist for Moody’s Economy.com. But “if we don’t get more jobs, the housing market is going nowhere.”

The news came after a report showed that sales of previously owned homes rose 6.8% in March. Although new-home sales make up a much smaller share of home-buying activity, economists are watching the data carefully as an indicator of whether the beleaguered construction industry will begin to add jobs in substantial numbers.

Home builders’ stocks climbed, with the Standard & Poor’s index of 12 major builders increasing nearly 11%.

Last year, housing was a drag on economic growth, but that could turn this year, said David Crowe, chief economist for the National Association of Homebuilders. Housing should contribute positively to the nation’s first-quarter growth when the government’s report on gross domestic product is released, he said.

New-home sales in March jumped the most in markets hit by February’s winter storms. They rose 43.5% in the South, 35.7% in the Northeast, 5.7% in the West and 4.3% in the Midwest.

The data are estimates based on surveys and are reported as an annual sales pace adjusted to take seasonal variations into account. The March sales pace hit an annual rate of 411,000 homes.

February’s revised annual rate of 324,000 was the lowest since the government began tracking such statistics in 1963. That made it easy for March figures to show a surge.

Zandi estimated that, stripping out the effects of February’s inclement weather and the influence of the tax credit, last month’s sales pace was closer to 350,000.

“The one thing to keep in mind is that these are still really horrible numbers,” said Patrick Newport, U.S. economist for the consultancy IHS Global Insight. “The only reason they look good is because February’s were the worst numbers ever.”

Sales are likely to fall once the tax credit expires but will recover later this year if the economy picks up steam, he said.

Newport was encouraged that about a third of homes bought in March had not begun construction, which suggests the shoppers, who were unlikely to close their sales in time to qualify for the government’s tax credit, were tempted by factors such as cheap prices and low interest rates.

Richard Voith, a real estate expert at the consulting firm Econsult Corp. in Philadelphia, predicted that the momentum would continue. “It will be a decent summer,” he said.

Inventory declined to levels not seen since March 1971, with the seasonally adjusted estimate of new houses for sale at the end of last month standing at 228,000. That represents a supply of 6.7 months at the current sales rate. The median sales price of new houses sold in March was $214,000.

Builders have suffered significantly from the recession, the credit crunch and competition from bank-owned properties. As a result, they have changed their business models, constructing smaller, cheaper dwellings to attract first-time buyers and putting up fewer houses that don’t have buyers lined up in advance.

Despite slumping sales this year, builders have begun construction on homes at a faster rate than last year, with many counting on a boost from the federal tax credit of up to $8,000 for first-time purchasers and $6,500 for some current homeowners.

“New homes are selling, so builders were smart,” Newport said. “They are not going to slow down the pace.”

Additionally, communications are abysmal at best in keeping all parties informed as to where they stand in the process. I receive calls daily from Realtors and consumers frustrated with receiving no information regarding offers they have submitted on short sale properties. The situation worsens when they finally discover their offer was not accepted, only to find out that a lower-priced offer was accepted after their offer was submitted.

The situation escalates when the listing office provides no confirmation that the offer was ever submitted and the sales record shows that the selling agent was with the listing office. Demands being placed by asset management companies on Realtors, if they want to continue to receive listings, also appear to be going beyond the scope of marketing the property.

Realtors have commented to me on numerous occasions that after securing a vacant home and incurring costs for doing so, they are not being compensated by the asset management firm, lender or contracting party. When they demand payment, the lender or asset management firm drops them from the list to receive future listings while still not paying for the services performed. There are several recommendations that Realtors should implement to improve this situation. Notice that I did not say “resolve” the situation as that will not happen without a cooperative effort from all parties involved.

1. Access to up-to-date information needs to be improved. There is no good reason a consumer or Realtor should not be informed regarding the status of a submitted offer. There is a tremendous appearance of impropriety when no communications are received, only to see an accepted sale at a lower price by an agent associated with the listing company. Although the lender may not indicate that the offer was rejected, the listing office must implement a process to assure all parties submitting offers that their offer was in fact presented.

2. Communications with consumers must get better. Based on telephone calls to the Association office, consumers are not being adequately advised on how long a short sale process may take; that even though their offer may be higher, it might not be accepted; or that information during the process may be very minimal. There is a growing tendency to fix blame instead of fixing the problem.

3. Realtors need to thoroughly review any agreement with lenders or asset managers prior to agreeing to market their properties. Numerous Realtors have commented that they have incurred extensive costs in securing properties only to have their invoices remain unpaid. When they press for payment, they are dropped and the listings are given to another firm, with the Realtor left holding the bag for the costs.

There are also a multitude of courses or programs being offered that will “make you a short sale expert.” Be wary of these offerings until you have checked out their validity and who is actually offering the program.

This may be the new reality for the real estate profession for the foreseeable future. We must work together to provide the best services possible to our clients and customers.

Walt Baczkowski is president of the Metropolitan Consolidated Association of REALTORS®. To contact him, e-mail walt@mcaronline.com.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 6.8% to a seasonally adjusted annual rate of 5.35 million units in March from 5.01 million in February, and are 16.1% above the 4.61 million-unit level in March 2009.

Lawrence Yun, NAR chief economist, said it is encouraging to see a broad home sales recovery in nearly every part of the country, with two important underlying trends. “Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running,” he said. “The home buyer tax credit has been a resounding success as these underlying trends point to a broad stabilization in home prices. This is preserving perhaps $1 trillion in largely middle class housing wealth that may have been wiped out without the housing stimulus measure.”

Total housing inventory at the end of March rose 1.5% to 3.58 million existing homes available for sale, which represents an 8.0-month supply at the current sales pace, down from an 8.5-month supply in February. Raw unsold inventory is 1.8% below a year ago, and is 21.7% below the record of 4.58 million in July 2008.

“Foreclosures have been feeding into the inventory pipeline at a fairly steady pace and are being absorbed manageably,” Yun said. “In fact, foreclosures are selling quickly, especially in the lower price ranges that are attractive to first-time home buyers.”

A parallel NAR practitioner survey shows first-time buyers purchased 44% of homes in March, up from 42% in February. Investors accounted for 19% of transactions in March, unchanged from February; the remaining sales were to repeat buyers. All-cash sales remain elevated at 27% in March, the same as in February.

The national median existing-home price for all housing types was $170,700 in March, up 0.4% from March 2009. Distressed homes, typically sold at a 15% discount, accounted for 35% of sales last month – unchanged from February.

“With home values stabilizing, a revival in home buying confidence will likely help the housing market get back on its feet even as the tax credit impact disappears,” Yun said.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buying conditions are in near-perfect alignment. “Even with tougher loan standards, historically low mortgage interest rates with affordable prices and a sense that the market is turning have created optimal conditions in much of the country,” she said.

“With the fast approaching April 30 deadline to get a contract in place for the tax credit, Realtors are working harder than ever to negotiate transactions, arrange services and complete paperwork,” Golder said. “Because many repeat buyers need to sell their current home first, many will be purchasing later without the tax credit but now have the benefit of a more buoyant housing market.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage dipped to 4.97% in March from 4.99% in February; the rate was 5.00% in March 2009.

Single-family home sales rose 7.3% to a seasonally adjusted annual rate of 4.68 million in March from a level of 4.36 million in February, and are 13.3% above the 4.13 million level a year ago. The median existing single-family home price was $170,700 in March, up 0.6% from March 2009.

Single-family median prices rose in 14 out of 20 metropolitan statistical areas reported in March in comparison with a year earlier. Five metro areas experienced double-digit increases, including San Diego, St. Louis and Boston.

Existing condominium and co-op sales increased 3.1% to a seasonally adjusted annual rate of 670,000 in March from 650,000 in February, and are 39.3% higher than the 481,000-unit level in March 2009. The median existing condo price was $170,600 in March, which is 0.7% below a year ago.

Northeast
Regionally, existing-home sales in the Northeast increased 6.0% to an annual level of 890,000 in March and are 25.4% higher than a year ago. The median price in the Northeast was $249,800, up 8.9% from March 2009.

Midwest
Existing-home sales in the Midwest rose 7.2% in March to a pace of 1.19 million and are 15.5% above March 2009. The median price in the Midwest was $139,300, up 0.2% from a year ago.

South
In the South, existing-home sales increased 7.1% to an annual level of 1.97 million in March and are 13.9% higher than a year ago. The median price in the South was $154,800, up 5.2% from March 2009.

West
Existing-home sales in the West rose 6.6% to an annual rate of 1.30 million in March and are 14.0% above March 2009. The median price in the West was $209,400, down 7.9% from a year ago.

“Financial conditions are improving as seen by the unwinding of various programs, most notably the MBS purchase program which ended in March. This is strong evidence that the Fed believes the financial sector can stand on its own,” said Fannie Mae Chief Economist Doug Duncan. “We estimate that June 2009 was the end of the recession, a good sign that we’re moving forward. Nevertheless, significant improvements in the labor market and consumer spending will be the big hurdles as we move toward recovery in the housing market and broader economy.”

New home sales are at record lows and will be slow to recover until inventory of existing homes and the foreclosure overhang are worked off. However, we see key indicators for existing home sales, including pending home sales and purchase applications, are showing good signs of a pickup.

Jobs, a driving force for housing, are now moving in the right direction. Fundamentals of the labor market appear to be improving as layoffs have slowed and hiring is showing signs of life. March payroll employment increased by 162,000, the largest gain in three years; temp employment posted a sixth consecutive monthly gain; and the average workweek increased. On the downside, unemployment will remain elevated for some time, despite the peak unemployment rate of 10.1% likely having occurred in October 2009.

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in February, rose 8.2% to 97.6 from a downwardly revised 90.2 in January, and remains 17.3% above February 2009 when it was 83.2. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said the improvement is another hopeful sign. “The rise in buyer contact activity may signal the early stages of a second surge of home sales this spring. The healthy gain hints home prices are continuing to flatten,” he said. “We need a second surge to meaningfully draw down inventory and definitively stabilize home values.”

The PHSI in the Northeast rose 9.0% to 77.7 in February and is 18.9% higher than February 2009. In the Midwest the index jumped 21.8% to 97.9 and is 18.7% above a year ago. Pending home sales in the South increased 9.2% to an index of 107.0, and the index is 17.5% higher than February 2009. In the West the index fell 4.8% to 98.0 but is 14.6% above a year ago.

“Anecdotally, we’re hearing about a rise of activity in recent weeks with ongoing reports of multiple offers in more markets, so the March data could demonstrate additional improvement from buyers responding to the tax credit,” Yun said.

“DIY projects can be great if you are taking on a small project, but when remodeling major portions of a home, such as a kitchen or bathroom, there are many structural and design elements that need to be considered,” said Brecko, who also serves as the 2010 chair of the Northeast Florida Builders Association’s Remodeler’s Council. “Essentially, there are five aspects that must be considered when deciding whether to hire a professional remodeler versus doing the project yourself. Those aspects include design, quality, time, money and warranty.”

Brecko said the design aspect of a remodeling project is paramount to its success. A professional remodeler can take a homeowner’s idea and transform it into reality with an addition or renovation. The years of experience a homeowner gets when they hire a professional remodeler will make the project better and this expertise is invaluable in designing a project to fit within an existing structure and budget.

Quality is the next facet a homeowner must look at when remodeling. The quality of a professional remodeling job will be far superior to that which a homeowner will receive if this is their first time remodeling, Brecko said. Professionals are able to guarantee better subcontractors at better prices with better leverage. Though a homeowner may find excellent subcontractors by contacting friends who have remodeled, checking references and calling past clients, they are unlikely to secure the pricing and warranty a professional remodeler will command.

Everyone knows time is money, and that is especially true when it comes to remodeling. A professional remodeler will ensure the project stays on time and within budget by perfecting the plans before the job begins, creating a thorough scope of work, hiring the qualified subcontractors and vendors ahead of time and properly supervising the quality of work. If it is necessary for a client to move out of their home during the renovation, a professional remodeler can save them extended rental costs by maintaining a deliberate pace of construction according to a pre-planned construction schedule.

“Many remodeling projects become the victim of the best intentions,” Brecko said. “A professional remodeler will employ systems to ensure that the project stays on schedule to protect not only their bottom line, but more importantly, their reputation.”

The last aspect Brecko recommends considering on a remodeling project is the warranty that comes with a professional company. When homeowners hire a professional, they are buying a service more than a product. A professionally managed job will have quality built in and will require less maintenance and fewer warranty calls on products.

“When you hire a professional remodeling team, you can expect motivated individuals who desire your complete satisfaction,” Brecko said. “Homeowners deserve to have someone working on their home who has experience, knowledge and the wherewithal to back up their work and reputation.”