While price statistics this month look like a softening market, one month does not make a trend. We will have to see what the next few months bring after the hangover from the housing tax credit diminishes. In order for buyers to get the tax credit before it expired, some third quarter sales were “pulled” into the second quarter causing inflation in the second quarter.
- Homes for sale: 505 (down from 536 in August, up from 427 one year ago)
- Homes sold: 85 (down from 86 in August and down from 98 one year ago)
- Average sales price: $270,664 (down from $284,660 in August 2010 and down from $283,361 one year ago)
- Average days on market: 45 (down from 52 last month, and the same as 45 days one year ago)
Since we have a stabilized unemployment rate and low interest rates what I expect to happen is similar to what happened in the car business after “Cash for Clunkers” ran out; the market will return to equilibrium over a three to six month period. The market will continue to stabilize as long as we can avoid any more government stimulus.
Commentary and analysis provided by David Hess, Executive Vice President.