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The market in January was a continuation of the December trend with weather having a significant impact on showings and market activity. The good news is the weather has broken and activity has risen accordingly. The silver lining is the weather did not affect our investor and first time home buyer segments as much, so overall pending sales in the metro area did actual rise, however all of that was in the under $100,000 Investor/First Time price range. All other market segments declined from a combination of weather and economic news.

Offsetting that decline is a continued increase in consumer activity on our web sites, up 18% over January of last year, showing us that there continues to be a pent up buyer demand that is waiting for some good news. The inventory of available homes also continues to decline in all price ranges, which over time will help with stabilizing prices.

The economic stimulus package did not carry the full housing tax credit we had hoped for, but it’s positive impact on housing will still be felt over the next 18 months (building slowly) as the rest of the economy moves. There was some great news for First Time home buyers in the stimulus, the First Time Home Buyer tax credit was raised to $8,000 and does not have to be repaid, so it is a true cash savings on your 2009 tax return! As with any tax credit there are some limitations but simply put, you will receive 10% of your purchase price (max to $8,000) repaid to you from a credit to your federal income tax.

We have a 2008 annual Metro Market Report available by email. If you would like a copy, please email customercare@realestateone.com.