We have “Improved Conditions!”

–A year-to-year increase occurred in 4Q sales for the first time in the last 3 years

–Sales in the <$200K price range rose by 14% compared to the same quarter last year – a recovery will likely start with low-priced properties

–Foreclosure sales as a percentage of total sales were up slightly, but some stabilization in “distressed” properties sales may be happening

–The % Sales price/Original List Price ratio improved again in 4Q 2009 compared to earlier 2009 quarters and was above that of 4Q 2008 representing the first such increase in the last 3 years

–The “Failed” listing percentage is gradually falling from the peak

–Supply of listings is much lower than in December, 2008 and is lower in all price ranges, nearing a “balanced” market (6 mos.) in the <$200K price range

–Although still high, the percentage of transactions which followed a price reduction was lower in 4Q 2009 than in 4Q 2008

–Median Sales price was slightly above that of 4Q 2008 – check out that little blip of an improvement in this chart!

Regardless, we still have “Troubling Conditions…”

–4Q 2009 comparisons were against a severely depressed market in 4Q 2008. Future comparisons will not have that advantage.

–% S/L ratios are still low compared to past markets

–Days-on-Market remains high although slightly lower than in the comparable period of last year

–More than a 9-month supply of listings exists when a neutral market has a 6-months supply, with supply extremely high in upper price ranges for both New and Resale properties

–Distressed properties still represent more than 1 in every 4 sales, keeping prices lower and DOM longer for non-foreclosure properties

Buyers and Sellers can make informed decisions based on just this one fact:

87% of properties are still initially being overpriced for current conditions, setting up price reductions, lower S/L ratios and longer DOM.

Take that fact to any street or submarket and see how things compare versus the metropolitan statistics.

Please call me if I can be of help with your next steps in buying or selling.