The real estate market in the area continues to evolve, and although the number of homes sold for the month of August 2008 decreased when compared to August 2007, some interesting numbers begin to appear. First, the average sales price in the market actually increased in August 2008 over the same period in 2007 by approximately $6000 per home. Yes, the number of homes sold, as reported by the Central Penn Multi List, decreased from 1029 homes in 2007 to 750 homes in 2008, but the average sales price increased by 3% year over year. Does that mean that the market turmoil is over? Not yet, but this is positive news in the sea of bad news that has been reported in the national press for the last year.

With the market still attempting to find equilibrium, some other statistics are important to recognize. First, the type of financing that is being used has shifted somewhat from being dominated by conventional financing to buyers using FHA and VA loans to purchase a home (In 2007, these loans made up 9% of the financing and in 2008 that increased to 24% of the loans). Second, the average days on market for the period increased from 53 days to 70 days.

So, as a seller how does that impact you? There are more homes competing for buyers right now in practically every price range, so pricing is extremely important. Some people have said to me that their home is worth less this year than last and that may be true. But if you are moving up, the same may be true for the home you may be looking to purchase right now, so take advantage of the buying opportunity now and put the appreciation in your pocket now. And if you want to see if there are good values in the market, please give me a call.