Comparing September 2009 with August 2009, closed sales increased 11.7% (297 v. 266).  Pending sales were up 5.3% (357 v. 339).  But new listings decreased 11.3% (519 v. 585).  As the listing inventory decreases,  the monthly rate of sale as compared to the total active listings (2,030) it would take 6.8 months to “use up” that inventory.  That inventory is still within the average range where the negotiations between buyers and sellers are nearly equal.  In other words, it is neither a buyer’s nor a seller’s market.  That evens out the power of negotiation so that neither party has a real “edge”.

Included in that inventory are a number of “short sales” where the potential buyer negotiates with the lender, asking them to take less than what is owed on the property.  Most lenders will consider such an offer provided it is not badly undercut.  The down side is that such sales tend to depress the market with lower selling prices which may not reflect the true market value.  However, appraisers will use those “comps” to arrive at an appraised value which may end up to be lower than the selling price negotiated between a willing buyer and a willing seller.  This can cause problems with obtaining a desired loan amount and could “kill” the transaction.

But all in all things are looking up for a nice “recovery” in 2010.

This is a perfect time for buyers to take adantage of this market with relatively lower prices and interest rate that continue to be at historic lows.