March 22, 2004

There were 3,234 single family detached and 441 condo & townhome closings in February. Combined, this

result was down only 14 closings from the same year ago period. After lagged closings are reported, we

should be up a few percentage points over 2003. Considering the poor weather for the first two months of

2004, to be up 2-3% is still a good sign. However, I expect a very strong March result, due to better weather

and lower interest rates.

Interest rates are again going down. This is always very good for housing, but the reason they are going

down is due to a "sluggish" economy. The high growth of the mid to late nineties may not be returning

anytime soon. Let’s hope our future reporting will show something to prove otherwise.

The average sale price for single family detached in February was $224,555 and for condos and townhomes

it was $181,420. Both of these averages are down from 2003’s overall average, but up from the same year

ago period. This is right in line with our expectations. With weak demand you have low or negative price

appreciation and with high demand you experience high appreciation. We have had moderate to low

demand, so our prices have remained low or almost flat.

There are other indicators that show improvement, but not great strength within our housing market. The

sale price to list price ratio for February was 97.6% versus 97.5% for the same year ago period. Days-on-market

was 83.5 for February, while 84.1 for February 2003. Total or continuous days on market was at

114.4 in February, but down from last February’s 118.5. All of these are positive trends, but at the same

time, small improvement, which parallels the low increases in demand.

Our inventory levels remain fairly stable, which can be seen from expired and days-on-market trending.

There were 3,403 expired single family listings in February. This was 253 more than February 2003, but

also the smallest increase since February 2000.

There were 1,040 withdrawn single family listings in February, an increase of 61 from the same year ago

period. However, 129 of these were from condos and townhomes, which was down from last February’s

171 withdrawn listings and this is only the third time over the past three years there was a decline.

For the fifth consecutive month, days-on-market declined from the same year ago period. Days-on-market

was 84.2 in February or a decrease of .7 days from February 2003. If this trend continues, we could have the

first year-to-year decline in days-on-market since 1999.

As you can see, we have improving trends, but nothing overly impressive. A strong March is needed to

jump-start a strong spring season.

Thank you,

Steve Palm

Smart Numbers