For the sixth month in a row, inventory levels remain above the 4,500 level. In September the number of active units in Anne Arundel County trended down 1.1% and was down 2.0% from last year. The average sold price was $403,687 and was down 8.5% from last year. The pending transaction to active listings ratio was 9.5% up from 9.2% last month.

In Anne Arundel County in September the total sold volume was down 3.9% from August. The average sold price in September was up 7.3% from August. The number of homes sold in September was down 10.4% from August. And, the average days on market in September was up 12.4% from last month.

There were 388 units sold in Anne Arundel County in September, down from 433 units sold in August. The number of active listings was 4,552 in September, down from 4,601 in August. The number of new listings taken in September was 889, up from 861 in August. The number of listings with pending contracts in September was 432, up slightly from 423 in August. The average sold price was $403,687 in September, up from $376,301 in August. The average number of days on market was 136 in September, up from 121 in August. The average list price to sold price ratio was 86.55% in September, down from 90.60% in August. Total sales volume for September was $156.6 million, down from $162.9 million in August.

In Annapolis the total sold volume in September was up 52.4% from August. The average sold price in was up 19.9% in September. And, the number of homes sold in September was up 27.1% from August. And, the average days on market in September was up 19.4% from August.

There were 75 units sold in Annapolis in September, up from 59 sold in August. The number of active listings was 977 in September, about the same as 987 in August. The number of new listings taken in September was 194, up from 170 taken in August. The number of listings with pending contracts in August was 125, up from 92 in August. The average sold price was $553,594 in September, up from $461,751 in August. The average number of days on market was 160 in September, up from 134 in August. The average list price to sold price ratio was 93.83% September, up from 94.74% in August. Total sales volume was $41.5 million in September, up from $27.2 million in August.

So what can we expect for the fourth quarter of 2008? Inventory will start to fall as year-end approaches. New listings will decline as the holidays approach. Pending sales may also decline. The ratio of pending sales to active listings is likely to stay around 1 to 10. And, prices are likely to be soft as the fall selling season comes to a close. There's no tipping point on the horizon when sales might improve. What has to happen? While the number of buyers in the market remains relatively constant at any time and they believe that homes are overpriced and loans are difficult to obtain. Sellers must lower their asking price and do so before their competition. Sellers should take all competition seriously and must price below properties under contract. When the buyers' perception is homes are overpriced, sellers must price their homes to look like a bargain. The lowest price and most favorable terms will result in the fastest sale!

While no one can predict the future with any certainty, one thing is certain; it's a buyer's market. A firm understanding of the market trends and forces is needed to make the best real estate decisions. So, if you are serious about buying or selling a home in today's real estate market, call Stephen Howell, Associate Broker, REALTOR®, Coldwell Banker Residential Brokerage, at 410-923-3217.