Why are mountain area home sales about half the number sold last year?  After all, the selection is great - over 500, interest rates are near historic lows, and prices are leveling.

For what it's worthy, here's my take on it:

1. Sellers are trying to hold on until the market improves.  Many have taken their properties off the market and made them into rentals.  Rentals are a bargain today.
2. Buyers have been waiting for home prices to bottom out.  It appears that is beginning to happen.

Several indicators are pointing to turning market.  During the first four months of this year, mountain area prices have been essentially flat.  The average (mean) single family home purchase price was up slightly at $344,000, compared to $340,000 last year.  The median, $322,000, was down by 2 ½ percent from $330,000 last year.

A large number of bank owned sales at lower prices are skewing the figures somewhat.  Often these homes have been trashed, and require several thousand dollars in expenditures to bring them back to original condition.   Eight, or 15%, of the 54 sales were bank owned.  Those eight brought the average price down by $18,000, and the median by $8,000.  With the bank owned sales out of the mix, the average purchase price was up by 6.5%.