Is it a Triple Play? Consumer Confidence Rising; Real Estate Sales Increase, New Construction numbers rebound. As of June 1st, all three important indicators are positive. Plus, the low interest rates and the $8000 First time Home Buyers Tax Credit continue to be market makers. So, is the market back? In many senses it is. Take a look at the numbers. According to the numbers reported by the National Association of Realtors, the Northeast saw a 12% increase in sales in April, with the largest increase in the lower-price segments. This increases the annual number of homes sold in the NE from 690,000 to 770,000. New home building starts increased 21% in April over March, a great sign that the excess inventory of new, un-sold homes is getting cleaned up. Not surprisingly, locally we are seeing a similar increase in activity, and a corresponding reduction in prices. Sales have trended upward in April, along with a dramatic increase in the inventory of homes for sale. This is great news for Buyers, providing a large selection of homes to choose from, but will continue to keep prices from making a great comeback as the forces of supply and demand impact what Buyers are willing to pay. Locally, the average sale price declined from a high of $231,000 in early 2008, to a current sale price of $130,000. Although this reflects the average price of the homes sold, it is important to consider that the lower priced homes reflect the best values for Buyers, as a large percentage of these sales have been Bank Owned or "Short Sale" properties. We are predicting that the most activity will continue to be in the lower 1/3 of the pricing tier for the next 3- 6 months, and consequently will have a larger than normal impact on the averages. The mid and upper tiers reflect some very good values as Sellers have adjusted their prices, although the reductions here typically do not reflect that larger discounts that distressed or foreclosed properties do. To download a copy of this article which includes sales graphs, please click here. For more information on your town, or house, please feel free to give us a call, or send us an email, we'd love to help.