Current Market Conditions

There are two topics I want everyone to be aware of;

the amount or velocity of properties selling

Notice of default filings

Properties sold have continued an upward trend with regards to the amount sold.  This number dramatically fell off in November and December of 08 and has steadily increased to date.  The amount of new homes sold is relatively flat.  Most new home builders have either ceased building or are simply pre-selling and then building.  The extreme entry level builders(from 125K-175K) are still building and selling.  Re-Sales are continuing a positive upward trend in volume sold.  Foreclosures are still dominating the market.  The 8,000.00 first time home buyer credit is certainly helping the lower end of the market.  I am seeing softening in the market in the 300K and above range.

The number of notice of default filings is continuing to grow.  The notice of default is a pre cursor to foreclosure.  I believe there will be even more price pressure on homes in the 300K and above range.  I do not feel prices on the low end of the market will be effected that much.  These homes given current interest rates have never been more affordable.  I have seen many multiple offers on well priced bank owned homes in the 120K-175K range.  I do believe that there will be fantastic opportunities to purchase homes well below build costs for the next year.  These will be nicer homes in good areas.  It is a great time to be a buyer.