REAL ESTATE MARKET BEGINNING TO TURN AROUND?

 

All the major indicators are now moving in a positive direction except for Days on Market –Active Listings. Pricing (in terms of $ per sq ft) has increased by 2.9% since April 6 while the monthly median sales price hit a low point on April 30 and has moved upwards by $3,410 since then.

Foreclosures are still rampant, but it is clear that the trustee sales are not providing enough supply to keep up with the growing demand from home buyers. REO sales are now falling as a percentage of the total sales volume, whereas normal sales are growing as both a percentage and in absolute terms. This change in the mix causes increased average pricing.  The REO share of pending listings is also falling rapidly, and this indicates that the price trend will continue and strengthen.

As if to celebrate the change in the market, the Cromford Market Index has moved over 100 for the first time since November 2005. This suggests continued market improvement over the coming weeks.