Existing home sales in the US jumped 5.5 % in September according to the National Association of Realtors (NAR) mostly due to decreasing inventory brought about by investors buying up distressed properties.  This could be the first sign of a bottoming of the sales slump, but many more months of positive sales and decreasing home inventories on the market are needed before experts will signal a turn around in the existing housing market.  Get the full article on Existing Home Sales Jump.

As a comparison to one of our local markets, I'll use one of the areas around Eagle Mountain Lake in Fort Worth, Texas which is commonly referred to by real estate agents as Area 109.  This data is up to date as of September 2008.  As you can see in the chart below, pending sales, new listings, active listings and months inventory are all down from the same month last year.  With the exception of the decrease in pending sales, this is all relatively good news for September.  With fewer new listings and active listings on the market compared with a year ago there is a modest increase in pressure on local demand resulting in less inventory on the market.  If this trend were to continue in the upcoming months, this would indicate that the market has turned around for the existing home market in the Eagle Mountain Lake and surrounding area (109 ) of Fort Worth, Texas.  A normalized market would be indicated at a point in which there is about 5 to 6 months of housing inventory.  If the inventory dropped below 5 months, a seller's market would be indicated.

September 2008 Statistics for Area 109

Although I'm a proponent of the notion that a bargain can be found in any type or market (buyer or seller), now seems to be an especially excellent time to be on the lookout for investor properties or a primary residence.  Give us call or email us and we can get started to help you find a home before the market snaps back.

By Bernie Christian