After a September in which we saw the re-listing of new construction skew the market unfavorably, October experienced a return to continuing steady improvement in the market.  The two major activity indexes - supply/demand ratio and the absorption rate - both improved over the preceding month and the comparable month in 2008.  In fact, the supply/demand ratio jumped to its highest level this year - 85%, a good sign indicating that fewer listings are coming on the market as more homes go under contract.

The absorption rate fell to 7.7 months, definitely better than the 10.2 months of September's skewed number, and better than the 8.1 months of October of last year.  The number of sales made each month has averaged over 30 for the year, but that is still significantly less than the 40+ seen in prior "boom years."

Prices seem to have stabilized in Hillsborough, as in the rest of Somerset County.  The extension and expansion of the homebuyers' tax credit has given added courage and impetus to buyers who have been sitting, watching, from the sidelines.  The real estate market in Hillsborough is definitely improving.

The first-time homebuyer tax credit, due to expire on November 30, has been extended and expanded.  Under legislation signed today by President Obama, first-time homebuyers have until April 30, 2010 to enter into a firm contract for the purchase of a home, and must close on it by June 30, 2010.

In addition, people who already own a home and have lived in it as their primary residence for at least five of the last eight years may be qualified for up to $6500 in a tax credit.

Income limits apply, but they have been raised in the case of the first-time home buyers.  For more information click here.

The real estate market should experience a good winter and spring!