Home sales on the rise, inventory drops.

As we approach the end of the first quarter of 2009 we have confirmation of what many of us have already concluded - home sales and market activity are increasing at a dramatic pace.

The National Association of Realtors issued a report showing a 5.1% increase in sales in the month of February. The NAR estimates that half of these sales were from first time home buyers taking advantage of the $8,000 federal tax credit as well as low home prices and a low interest rate environment.

Click here for some market number comparisons for Dane county between the first quarter of 2008 and the first quarter (so far) of 2009.

Some interesting things to note are the much lower inventory numbers in 2009 in almost all property categories. The sold price ratio (ratio of sold price to list price) has widened slightly so far in 2009 to 95.48% compared to 96.34% in 2008. (The 10 year South Central Wisconsin MLS average sold price ratio is 97.07%, while the Homefront LLC 10 year average is slightly higher at 97.24%)

The numbers also indicate fewer days on market (DOM) so far in 2009 in all categories as well as a lower percentage of listings that expire unsold. These factors I believe indicates that sellers have been more proactive in pricing and more willing to negotiate to get a sale.

One surprising (at least to me) statistic is the weakness in the condo market comparison between Q1 2008 and Q1 2009.