Market Update

Sold and closed homes in Albany County for August '08 were 210 down from 256 last August. Average days on market remained about the same at 60 this August vs. 62 last August and sellers were averaging 97.1% of their asking price this August vs. 97.5% last August. Year to date closed sales in Albany County through August 31 were down 20% from the same period in '07, 1367 vs. 1708. Days on market for August 31 year to date were 69 days this year vs. 68 days last year. The sale to list price ratio fell from 97.4% this year compared to 97.8% last year. Average selling prices have fallen about 3% from $241,000 in '07 to $233,000 this year to date.

With regard to current inventory levels in Albany County as of September 1, 2008 we have a 7.3 month supply of homes on the market (1368 active listings vs. 187 pending contracts in August). If inventory of available homes holds for another month or two at this level we will be in a buyer's market. Home mortgage interest rates continue to hold in the 6.25 to 6.5% range for 30 year fixed rate mortgages. Underwriting criteria have become more stringent and buyers must be carefully qualified as underwriting criteria are constantly changing.