How Does the Market Look?

Are you wondering how the housing market is looking as we enter the prime real estate season of the year?  In real estate, The Months’ Supply Index is a simple measure that compares the number of available homes on the market at the end of any given month to the contract activity of that same month.  By this measure, the market conditions at the end of 2009 were dramatically better than those at the end of 2008.  The chart below compares the relative supply across five different price categories in December 2008 and December 2009.  Supply is significantly less in almost every price range.  The homebuyers’ tax credit has helped to fuel this tight supply condition.  Our hope is that this is the beginning of a ripple effect upward through the price categories.  This doesn’t mean that the market is fully recovered; far from it.  But it’s better than a year ago and, given how rough things have been, that feels pretty good.

This is an excellent time to buy land if you’re considering building your own home. For help, check out our guidelines or contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it .