Greetings!

Enclosed for your review and information is the April report of the real estate activity in Douglas County for residential properties. Housing prices nationwide are still on the decline and are adjusting to the mid 1990′s price range. Price stablization, with its positive implications for reducing foreclosures, will be a critical factor in the reduction of unsold inventories according to the National Home Builders economists. They go onto say the fundamental demand factors, as opposed to excess demand, will be the key factor in returning the housing market to its balance. However, it is still uncertain when that will occur. Their best estimate is to see positive numbers in 2012 and not until 2017 will it return to the 1.5-2.0 million housing start levels we saw in 2005.

In Douglas County, when you compare April 2009 to March 2009 pending sales grew by some 6.4% and over 18% since the first of the year. It is important to note that pending sales are headed in a positive direction which will lead to more closed sales. We did see a raise of 14.6% in closed sales as well. I welcomed the good news and I am hopeful that this trend will continue.

The average number of days on the market has dropped by 20 days to 168 days or 5+ months. The average sales price in April increased by 18.6% to $147,300 v. $124,200 in March 2009. This is the first positive sign we have in all of 2009. With interest rates at an all time low, a large inventory for buyers to pick from and a first time buyers’ tax credit of $8,000 we are seeing increased sales. Also, our inventory of existing homes is down to 18.9 months which is a drop from 30.3 months in January of 2009. I am encouraged by these numbers because it means that we are gaining positive momentum for the summer months.

There is no question that our economy continues to be weak but there are some positive signs as well. Retail spending in Douglas County is still sluggish but people are spending money on necessities, just go into a grocery store and you have to wait in line to check out. It appears that COSTCO is about to break ground, which we all welcome, for it will add jobs as well as more purchasing options.

Neil

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