There's no shortage of bad news in virtually every real estate market in the country.  All one has to do is watch TV for 5 minutes, read the newspaper, or go online.  As a result, many home buyers today are still wondering whether it’s time to jump into the housing market.  After all, it would be great to wait until the perfect moment when prices, inventory, and interest rates all converge and the stars align, right?  There’s a weakness in that thought process, though, because trying to “time” the housing market is as difficult and risky as trying to do the same thing in the stock market.  Those that try it usually end up disappointed.  Even so, the stars may actually be pretty lined-up right now in many real estate markets if buyers are willing to look past the short-term.

One of the leading indicators we watch is the national Pending Home Sales Index (PHSI).  Pending home sales have risen for nine months in a row now, a first for the series of the index since its inception in 2001, according to the National Association of Realtors®.  This is an indication that buyers are, or at least should be recognizing the home-buying signs by now.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.  The first-time homebuyer federal tax credit has likely had some impact on these figures, but they are still interesting and generally positive.

On a local level in Boulder and Broomfield Counties in Colorado, the median price of a sold listing has remained relatively flat over the past 12 months.  For residential re-sale properties from November '08 through November '09, the median price stood at $337,500 - up a modest 2% year over year (Source: IRES MLS).  The MSI, or months' supply of inventory, is actually down 32% over the same time period to an average of 7.7 months at the end of November '09.  Comparitively speaking these are also positive numbers, with the lower-end price range faring the best and the luxury market lagging behind.

These stats can vary significantly from market to amrket and even from neighborhood to neighborhood, so be sure to consult with your Realtor® if you would like to see what your specific market looks like, but in general these are encouraging numbers.  The "perfect" market that many buyers profess to be waiting for may already exist in some markets, with prices, inventory and interest all being in their favor.  It remains a good time to buy a Boulder home, with interest rates remaining at historic lows, the possible federal tax credit for 1st time buyers and many other buyers as well, and home prices at attractive levels.