Continuing on the trend we all expected from the “Tax Credit” tsunami, there was a spike in pending sales in April that started closing in May. Closed sales in May are up by 200 units from April.
Here is some good news: Average sale prices so far this year are within $500 of the average sale prices for 2009. Also, homes over $300k have begun selling again.
The big spike of pending sales in April slowed down in May, but we still saw about 5 contracts a day during the month. The average length of time for a home to get a contract keeps getting longer.
Although home prices have been relatively stable for several months, we are still in a buyer’s market, with a stock of inventory that would last for a year or more at current absorption rates.