Market Update

July '08 showed 65 fewer homes sales closed than the previous July in Albany County (191 vs. 256) and down 7 from last month (191 in July '08 vs.198 in July '07. The average price increased from $251,000 in July '07 to $256,000 this past July but average days on the market increased from 52 last year to 60 this year. The sale to list price ratio was unchanged at 98%. At the beginning of this month of August there were 1363 single family homes on the market in Albany County. Pending contracts in last month (July) were 172 (vs. 225 last month) which indicates a 7.9 month supply of homes on the market. This is up from last month when there was a 5.9 month supply of homes. The market velocity (the rate at which homes are selling) has slowed some this month resulting in the 2 month increase in the supply of homes. A six month supply of homes is generally considered to be market that is in balance (neither a buyer's or seller's market). When the supply of homes exceeds six months for several months in a row then it is considered to be a buyer's market. Interest rates are still in the mid 6% range, which is still historically low although lenders underwriting criteria have generally tightened as a result of the sub-prime credit problem.