The Dane County median home and condo price was lower by 5.9% (find the details here). We took a closer look at the September numbers and found there is much more to this story than just lower prices.
First, there is some good news in all of this. For the first time in 32 months, Dane County single family home sales failed to decrease. Home sales in September were even with the number of homes sold in September of 2007.
Second, it's clear a large number of first-time home buyers are jumping into the market. In fact home sales in the under $200k price range jumped by 52% in September. Many first-time buyers are clearly taking advantage of the $7,500 tax credit.
Third, home sales in the $200k and above price range remained sluggish. September home sales in this price category were down 22% from last year.
As a result, the percentage of buyers in the under $200k price range jumped from 26% in September of 2007 to 41% in September of 2008. This is why prices were lower in September.
The large increase in first-time home buyers is a good step for the market. Now let's see when more buyers in other price categories start jumping in.
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