Market Update.

May's New Home Sales were down 33% based on the Commerce Department's report. It revealed a New construction levels are at record lows. The tax credits were very successful but they're gone and our businesses are reflecting the its absence.  This data is favorable news for the bond market and mortgage rates because a weakening housing sector will make a broader economic recovery difficult and eases inflation concerns. This may stave off rate increases in the short term but unfortunately the lack consumer confidence is making home sales, new and existing, uncharacteristically slow for this time of year. Two years ago in June I took an Alaskan cruise and 5 of my listings sold. This year Terry and I will return to Alaska but the market is drastically different. I am working harder to obtain sales than I have in years. Sellers are frustrated. Buyer's are very skittish. Credit is tighter. So why am I so optimistic? My mother used to say "this too shall pass". I believe the new normal will have fewer of us selling real estate. The survivors will be the one's that know our business and treat it as a business. You'll have to know your craft, hone you skills, be more professional, watch your expenditures and be more competitive. These are good things. Good for the industry and good for me.

Ken Rutherford, CRS
Broker Associate
Coldwell Banker Select