The January 2008 home sales for Wake County came out this morning, and there are some mixed messages. Sales for January 2008 were down 30% compared to January of 2007 (812 to 1240) but average price was up from $242,000 to $259,000 and average price per sq ft was up from $118 to $124.

In my opinion the reason for the decrease in sales is a symptom of the markets across the country, not Wake County. What I mean is IF people could sell there homes elsewhere they would purchase here. We are seeing a great deal of pent-up demand in the market, and as markets across the country (especially the northeast and Midwest) recover our market will explode. What we have in Wake County is the desire to buy, and that is not very prevalent in other parts of the country.

Homes under contract on 01/31/08 but not closed: 1179 only 94 less than closed in February of 2007. With the activity in the market the last 30 days I am sure that February closings will be on par or exceed the number from last year.

We are seeing a great market right now due to the recent interest rate cuts. With rates down 20% from this time last year, homes are more affordable in Wake County in spring of 2008 than they were in spring of 2007.

Months of inventory based on January closings is 10 months, based on pendings is 6.1, I prefer to look at pendings! With many builders slowing down production of spec homes first quarter of 2008 we should see this number decrease.