There's now more data to look at and the New Paltz market reflects the downturn in the market.

The number of units sold between 1/1/08 and 5/1/08 is almost half of the units sold during the same period on 2007.

Number of units '08: 12
Number of units '07: 27

Sales volume is obviously down, but average prices have risen:

Average sales price '08" $388,083
Average sales price '07: $306,166

There are currently 79 active listings in New Paltz including 9 condos, ranging from 1a 2-bedroom bungalow for $225,000 to a high-end B*B on the market for $2,400,000. There are currently 4 deals in contract.

Let's compare data from the first of the year to the same period last year:

The number of units sold from 1/1/08 through 5/1/08 is down 32% compared to the same period last year:

Units sold '08: 277
Units sold '07: 409

Sales volume for the same period is off by 33%:

Sales volume '08: $80,491,975
Sales volume '07: $120,964,441

Average prices throughout the county are more or less the same:

Average price '08: $290,585
Average price '07: $295,757

Foreclosures are certainly up, though I have no hard data to compare one year to the next. A fairly reliable website currently shows 90 foreclosures in the county, yet I know from personal experience that the number is higher.

So what should you be doing in this market?

Buyers should BUY! The same adage for the stock market appies to housing: "it's not market timing, but rather time in the market" that's important. Whether you are looking for a full time residence or a weekend getaway and intend to hold on to it for 3-5 years, you should be fine. Houses are generally selling at 5-10% below asking price.

To generate activity and offers, sellers should price their houses slightly below market and do all they can to make the property stand out in the marketplac