We are closing the month of February with greater buyer traffic and an increase in pending sales, all of which indicates an overall increase in market activity. How long will it last? I see this coming and going throughout the year. We will have short bursts of increased activity, subsequent slowing, followed by more activity. Why? The interest rates are unstable, as is the stock and bond markets, and we also have the coming election playing into things. People are operating on emotion right now, and this is what will cause some of the up and downs in the market. A change in the FHA loan programs may add some stability, but will likely only last a short time.

For a breakdown of February’s sales by price go to: http://www.joshuakoffler.com/uploads/SalesBreakdownbyMonth.xls .

Interest rates are still hovering around 6.0% with no points.