The housing market is showing signs of strength.  Homes sold are up and inventory is down...hooray!  Three factors seem to have lead to the change:

  1. Mortgage rates are 1.5% lower that last summer...thank you stimulus plan.
  2. Home prices have responded to economic conditions and are mostly more affordable nationwide.
  3. $8000 tax credit for first time home buyers is driving the under $200,000 market and starting the purchase cycle.

We are currently showing approximately 10.2 months of inventory nationwide. That number comes from looking at how many homes have sold over the past year and comparing it to the number of homes currently on the market.  That is down significantly from the 12.4 months of inventory we had in January. 

When you look at the number of pending sales, the prognosis looks even better.  The price range under $200,000 looks prticularly strong because of the stimulus package incentive.  Signs point to a continuing downward trend so...