Despite the fact home sales got off to a slow start in 2009, there is definite evidence sales are improving, especially when compared to activity for the same time period in 2008. This graph illustrates the total number of residential detached sales per month for the last 3 years. Beginning in June, homes sales in 2009 outperformed 2008 by 11.1%. This can be attributed to a number of factors, but more than likely is a direct result of the Home Buyer Tax Credit, historically low interest rates and all time low Housing Affordability index. Stronger sales in the 2nd half of 2009 suggests market stabilization, which will aid in maintaining property values as Buyers are demonstrating a higher comfort level that the real estate market has indeed "bottomed out" Assuming the market's performance in the 1st Quarter of 2010 outperforms 2009 home prices should stabilize, hold steady and slowly begin experiencing very modest gains over the next 18 months.
