The Cromford Report’s April 11th real estate market update reported bullish indicators of an improving market:
- Active listings are falling at the “fastest rate we have ever measured”
- Average list price per square foot for active listings are moving higher, partially attributable to fewer cheap homes on the market (those bank owned homes are going fast and supply is down); however overall prices are firming
- Months supply dropped from 7.4 to 6.0 in a 14 day period (6 months of inventory is in the range of a sellers’ market)
- Number of pending listings are setting new records
The Cromford Report charts of these indicators show dramatic improvements as compared to the same time frames in prior years going back to at least 2005. Of course, “improvements” depend on which side of the transaction you sit on. Better for sellers, worse for buyers.
All this adds up to a possible bottoming process. Will it hold up? Anyone’s guess at this time, but it has been a very long time since we’ve seen positive signs like this. It may depend on how much inventory the banks have yet to release into the market and if the loan modification programs are successful at dropping the foreclosure rate.
If you are a buyer sitting on the fence, how much longer do you want to gamble on lower prices and mortgage rates?
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