Now that the snow is gone I look for a surge in inventory, especially in the single-family sector. Typically March is when inventory really starts to grow and I believe that many who would have come on in February were prevented from doing so by the weather. I also feel that many savvy sellers are jumping in early trying to catch those buyers that are active now trying to buy so they can get the tax stimulus incentive before it goes away in April. I think that is a smart strategy. I still look for interest rates to start creeping up, regardless of what the Fed does, in response to the government getting out of the mortgage backed security business. I must admit that I am somewhat reassured that we have not already seen a larger spike in rates and believe me this is something I hope that I am wrong about. I think there is pent up demand for good housing to come on the market and I think that what comes on in March that is good will be snapped up. I look for increased relocation activity to boost that demand. I am heartened to see the short sale process drawing the attention of the bigger banks and efforts being made to somewhat streamline that process. That would be a huge plus to the market place and would certainly go a long way to relieving the fears of the looming foreclosures and shadow inventory. All that being said I believe that March will be a great month in the marketplace and that the influx of inventory will be gobbled up by current demand. The town home market will continue to generate multiple offers and be fiercely competitive. The single family market will also continue to move well although the highest brackets will not see the same level of activity as the lower and mid level price ranges. As our market continues to unfold I will as usual keep you informed.
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