Out on a Limb

As we go into May I expet changes to come to our market. those sellers that are in a "have to sell" situation will see the summer market looming as Memorial Day approaches and they will realize they're missing the spring market. I expect them to get more aggressive in their pricing. The activity level in May will dictate how early it starts and how aggressive they have to price to get out in front of the market. If the level of activity we saw in April continues then we should be fine; but; if that was the extent of the rlo bubble we typically see, then we will not be. My opinion is that as consumer confidence comes back a bit we will see those fence sitters get into the market. Our stats LOCALLY are great with good employment numbers, good wage numbers and a slow but steady improvement in housing prices. Relocation may be a bit stagnant as they are held back by the real estate market in their part of the country as well as being incluenced by that area's market. It takes a bit of time for them to realize that they are not in Kansas anymore and our market is safer and more dynamic than "back home". The short sale market is very active and we are seeing the bank processes improve...finally! Each bank is different but we took one from contract to close in just 63 days already this year. Negotiation on these short sales represent about 15-20% of our business and, knock on wood, we have a 100% success rate! Ok, the short answer to what I see in the next 30-90 days, the upper end of the market will stay steady and it has been good so far this year. The below $400,000 market will also continue to go strong and should actually improve. The middle of the market place will see average activity and hopefully an increase as confidence comes back a bit. Homes that have been on the market 30+ days, homes that have an impacted lot or a condition issue with motivated sellers will adjust their pricing down. I do not expect to see rates move dramatically in the short term but we are continuing to see new requirements and restrictions coming out affecting affordability. As we head into the summer months we typically see inventory start to decline and we typically get a little bubble of activity as relocation procrastinators rush to get in before school starts. As the market continues to unfold I will, as usual, keep you informed.