So how is the year developing? That's the question everyone asks and one that Clients (buyers and sellers) are most concerned about. On every one's mind is whether the market is going to continue a downward trend, reverse last year's fall and gain new momentum or just continue in an uncertain sideways motion.

Here's what I've seen in the first six weeks:

• The vaunted "Spring Market" has not arrived in force yet. In fact, I don't expect the phenomenon known as the Spring Market to rescue homeowners hoping for a big gain on their property. More likely, we will see appreciation on the order of last year's markets.
• The most activity (buying and selling) appears to be in the "upper bracket" price ranges which will most likely remain the most active for a good part of the year. Why? Last year was good for many in the financial fields, packaged goods companies and other industries. Inventories in the price ranges ABOVE $1.4MM are dropping and there appears to be more buyers looking in those ranges. Also, builders are on the sidelines waiting for a stronger market to develop and, as a consequence, the inventory of new construction homes is going down.
• There is not a strong pricing trend - we aren't seeing the evidence that sellers have accepted the media's contention that "It's a buyers' market". That's a great headline but it's not supported by the numbers. Rather, sellers are holding on, waiting out the aggressive buyers and accepting the longer Days On Market measure. While the smart business decision would be to react to the market and price down, Days on Market in every town increased significantly last year. Sellers know what they need to get and are willing to wait for the right buyer. House Prices are seeking a normal level and we probably will need to wait several months for a clear trend to emerge.
• The interest in new homes, including new construction, is strong and open houses are well attended. There are buyers out there.

So what does this all mean? We haven't found our way yet and it's is a good time to be in the market.

More to come after tomorrow's Brokers' Tour.

DS