So the question on everyone’s lips these days seems to be what is going on in the market and when will it end? The answer is, of course, a little uncertain. What we do know is that the winter and spring were very slow with few sales, until June, with inventories rising and prices falling. We still have fabulous interest rates and it is very much a buyer’s market.

What we can only project and forecast is what might be in our future. We believe that the interest rates will stay low or very reasonable for at least the short term, perhaps a year or more before inflation might set in, but it will be up to the Fed to control that as best they can while selling bonds at ever higher rates. We have seen a strong turn upward in June sales with properties selling for an average of around 30% less than the peak values of 20 or more months ago. As long as the inventory remains high, values will not climb. At the current pace it will take over a year to reduce the inventory to where prices are impacted upward. If interest rates climb steeply, that will suppress sales and thus prices, though a small rise in interest rates seems to get smart buyers to commit before the rates move higher.

Until recently we were faced with only negative economic market indicators. Now we see at least mixed signals and a slowing of the downward trends. Consumer savings – up; new home sales - down; existing home sales – up (you can buy for less than you can build); unemployment – up, but consumer confidence is up too. So the news is better than it was and our local sales seem to mirror that.

If you have the opportunity or need to move within the community you may have to sell low but also will have the opportunity to buy low – a horizontal move. With high inventory coupled with low demand and low interest rates, there has never been a better time to make the move.

We hear a lot about banks not lending money. There is only some truth to that. Actually the local banks are pretty healthy and will gladly lend to qualified buyers that have good credit, 20% or more down and can show income on tax returns - just like it used to be done!

So don’t be afraid of the market. Call your banker and favorite realtor for more details.

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