February Market Update

February has picked up speed, indicating that the tax credits may be having a more significant impact than we had first projected. I am hearing stories of move-up buyers acting as a direct result of the $6,500 credit, which we had not expected. In addition, with inventories shrinking, we are moving towards a balanced market in some price ranges. Behind that good news there still continues an underlying weakness with inventories still in the Buyer's Market range for most price ranges (Months Supply of Inventory moving from 8 months to 4 months under $100,000 and from 24 to 9 months over $100,000 Feb 09' vs. Feb 08').


We still project a slowing market the second half of this year and it will feel even slower than it really is because of comparisons to a very strong second half of 2009.

A new wild card in the process is the implementation of HAMP (Home Affordable Modification Program - for loan modifications) and HAFA (Home Affordable Foreclosure Alternative Program - for short sales) in April. These two Federal initiatives are designed to reduce the number of foreclosures and stream line the Short Sale process. Their success will depend on the lenders ability to shift, staff up and train to the new program. We expect it to be a slow start, but, if effective, they do offer the opportunity to help offset the effects of the growing "Shadow Inventory" of delinquent, bank inventory and not yet foreclosed properties.


Although the market is by no means robust, this will be the best spring in the past three years for Sellers and in relative terms the best values in years for Buyers. A rare perfect moment for all parties!

Here is our activity for February, generating more buyers and sellers than any other broker in the state.