So why the spike in December? I wish I knew! The low median house price number leads me to believe that the public is recognising this market as an excellent buying opportunity and is bargain shopping. Decembers median house price was the lowest the county has seen since March of 2004. The Realtors I have been talking to are reporting increased traffic for the first few days of January, another indicator that buyers are in a buying mood…as long as the price is right.
Even with the good news, I don’t think we are out of the woods yet. I have it on good authority that there is another wave of foreclosures getting ready to hit. This wave is the backlog of repossessons caused by the robo-signing scandal. As these houses come to market, I expect inventory to rise and prices to drop a bit more…but not too much, since existing houses are already selling well below replacement cost.