In medical terms the sign of recovery begins when the patient is stable. The patient (in this case our housing market) will begin showing signs of improving health when the supply of houses begins to decrease while the number of houses selling increases.
When fewer and fewer foreclosures come on the market the patient will be out of the woods.
Foreclosures, available in every price range, are marketed at an irresistible price to tantalize the few buyers shopping. They lower the benchmark for house values.
We all know the #1 Investment Rule for Success: "Buy Low! Sell High!" There are buyers buying.
Let's examine the health of our market from 09/01/08 to 10/19/2008 (49 Days).
228 residential listings where put on the market.109 were single family homes.
37 of the single family homes are foreclosures. That's approximately 1/3.
During the same time period 27 homes went into a contract. 9 were foreclosures. Again it's 1/3.
Based on this pattern 1 house is selling every 2 days. There are 497 single family homes. At this rate our patient will not get out of bed for 2 ½ years. That would bring us to mid-2011.
Keeping close track of the market activity is an important step in planning for your future.
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