Trend #1: Although we aren't ready to publish our August numbers yet, Dane County single family home sales rose for the second straight month. Once again, much of the activity was in the more affordable price categories as buyers sought to take advantage of the first-time home buyer tax credit.
Trend #2: Dane County inventories on August 31st were lower than the levels from August 31st of 2008. Single family home inventory was lower by 223 units compared to last year. Condo inventory was lower by 208 units.
As you'll see from the red line in the graph above, inventory is still quite high. We'll need more months of increased sales, for both homes and condos and across all price categories, to move inventories to more normal levels.
Also keep in mind there are a number of people who want to sell, but who are sitting on the sidelines until they have more confidence in the market. This "shadow inventory", along with future inventory coming from the growing foreclosure market, will most likely keep supply levels high well into 2010.
For more on the latest inventory trends, check out our monthly reports that show how inventory varies by price range and location, for both homes and condos.
Have a good weekend,
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
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