Better soon than later...

Sooner or later the market is going to bottom out. And if January’s residential sales hold any weight, that bottom can’t be too far off.

Home sales here for the month were off 71 percent compared with last year: five homes sold in January 2009, compared with 17 a year ago. Average closing price consistent year to year, right around $122,000.

Land sales were just as bleak, with three parcels sold against the 12 sold last year. That’s a 71 percent decline. The figures are for most of the country served by the Realtracs MLS. But local discussions reinforce the trends county wide

At the Register of Deeds office, the near 40 percent decline in home sales last year was reflected in property transfers for 2008. Official notes the amount of title searches didn’t seem to drop off, surmising a good share of searches were on behalf of buyers who ultimately did not qualify for a mortgage. No surprise, given the way credit seemed to dry up in the waning months of 2008.

And at the banks, one loan officer shared that much activity, at least for the short term, were more about working with existing borrowers than processing new applications. No one is served when someone loses their home to foreclosure in this atmosphere.

There’s a psychology which seems to have settled in. People running scared, afraid for their economic future, gripped with uncertainty and reluctant to move. But people have to live somewhere, and there are some who must sell their homes, whatever the market. Given all that government is doing to get credit flowing. it seems only a matter of time before things start turning around. That will usher in a great time to buy.

How long that comeback is in arriving will ultimately define the year.