May 2010 provided our first month of data after an extensive 18-month tax credit party. And the hangover has truly set in. The tax credit propped up pending sales, so they predictably took a substantial dip a month after it expired.

Pending Sales decreased nearly 32.0 percent from last May to 895 purchase agreements signed. Keep in mind that Closed Sales will remain strong through the end of June as buyers have until June 30 to reach the closing table.

Sellers danced to a similar yet softer beat. New Listings posted a slight decrease to clock in at 2,182 new homes on the market, representing a 23.7 percent year-over-year decrease. This sort of market activity did bring inventory up 3.8 percent over last May to 11,851 Active Listings.

In response to the mix of homes closing, Median Sales Price did post a slight but welcomed 3.0 percent increase over the same period last year. We anticipate prices remaining relatively stable with the potential for some softness if demand indicators continue to wane.

It still remains to be seen whether the dip in buyer activity is a short-term effect of the credit deadline passing or a result of long-term changes in demand. Regardless, we expect a slowed summer selling season. Also keep an eye on unemployment rates. Until companies start hiring in large numbers again, demand may continue to weaken.

You can follow this link: http://www.metromls.com/support/Market_Updates/index.html or visit www.mlswis.com and select MLS Statistics under the MLS Site Navigation menu. You will find other reports and statistics which may be of use to you in your business.

As always, your comments and questions are welcome!

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