Average home prices were down by about $80K since last month, but again, a decrease is to be expected. The good news for the year has been the lower inventory levels than for the same time last year and we continue to be on track to close about the same amount of sales this year as in 2008. Although sales were low compared to previous years, we are finishing the years with sales in excess of 300 homes per month which was better than the last few months of 2007 or 2008.

If we can keep this pace up, assuming interest rates do not shoot up, we may actually see sales volumes increase slightly in 2009.  Although we still need to overcome the amount of foreclosures happening in our region. The National Association of Realtors recently announced its foreclosures results for the third quarter of 2009. The South, Northwest and Midwest all saw a decrease in foreclosures between 12-14% compared to the same time the previous year. The West only experienced a 1.6% decrease.

Another local trend we are seeing in the area is a number of developers deciding not to sell properties they built with the original intent sell upon completion. The developers with stronger balance sheets are instead renting many of these properties, in the hopes the prices will increase in the next couple years.