Interesting figures have just been released from the Realtor Association of the Pioneer Valley. October was the fourth most active month this year for single family property; following behind August, July and June. This indicates a normal market rhythm.
While the median price continues to adjust downward compared to the prior year October's median price was one of the higher for this year.
The most important indicator in the real estate market is the absorption rate which is simply the number of active listings divided by the sales. For October the rate was 8.9; lower than the February high of 12.5. Most analyst's agree that the market is balanced between 7.5 and 8.5. These October figures suggest that locally we are close to a balanced market.
Patience of course is important as the average days on market has increased from 149 days in October of 2007 to 177 days for October of 2008. So the bottom line is..... keep the faith! Here in the Valley we are fortunate to not have the high inventories that a lot of the nation is experiencing. Once we have buyer confidence our market should recover swiftly.
Monday, December 8, 2008
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