Market Update for September

The entire MLS had a 5 month supply of homes on the market in September 2009, making it slightly a seller's market. 3,846 homes and condos sold in September out of 19,834 listings. An overall decrease in sales volume reflects the slow down in processing pending foreclosures by banks unwilling to flood the market and fewer homeowners choosing to sell in the depressed market. The 4.9% increase in average home sales price reflects the bidding wars in the least expensive neighborhoods, as prices begin to bounce up a bit in the SW and NE parts of the city. There is a strong sellers market in the lower end of the market that is pitting eager investors with first time home buyers trying to close before the Nov 30th deadline for the $8000 tax credit. Even where prices are slighty up, there is much ground to regain after the losses from recent years. Parts of the market that previously were resisting downward market forces (the upper end and certain neighborhoods) are now feeling the effect of distressed home sales (foreclosures and short sales). The upper end of the market is still depressed and has a strong buyers market. So, ask the most important question, "What is the market in my neighborhood?"