For the first time since 2007, the average sale price for single-family homes increased in 2010.  Before we declare the housing slump over, however, we do need to acknowledge that at least a portion of the sales strength was due to the economic stimulus that gave an incentive to many buyers.  Additional concern comes from the low sales volume of 293 homes, down from 335 homes in 2009 and over 500 homes at the height of the previous real estate boom.

A closer look at 2010 sales by fiscal quarter supports the theory that sales were influenced by the Stimulus that expired in April of 2010.  The graph to the side here shows that both number of transactions and average sales price spiked in the Second Quarter as buyers took advantage of Stimulus.  As expected, volume fell sharply in the 3^rd and 4^th Quarters and average price followed as sellers found fewer buyers to sell to and had to compromise on price in order to sell their homes.

The number of sales in the 4^th Quarter was the biggest surprise to me.  As an active agent, I hosted open houses and had buyers that were actively looking during the 4^th Quarter.  I was very encouraged at the activity and discussions with other local real estate agents indicated that there was a strong pool of buyers looking during that time.  Due to this, I am optimistic that buyers that were looking in late 2010 will create strong demand for homes during the first half of 2011.

The bottom line is that I expect sales volumes to increase in 2011, which is good news if you are trying to sell a home.  The increased volume should provide a stabilizing force to property values, which I expect to be flat to slightly downward trending as we continue to work through the excess inventory that our market has built up over that past couple years.