(March 20, 2008)  The number of homes contracted for sale in February 2008 took a very positive turn, topping contracts written during the previous three months as well as the same month last year according to the Columbus Board of REALTORS®.

The drop in mortgage interest rates in late January generated immediate housing activity, says Greg Hrabcak, President of the Columbus Board of REALTORS®. Many buyers were waiting for the drop. Some used it to be able to afford their first home as the lower interest rates helped them to finally qualify for a home. Others jumped at the chance to move up to a larger home.

Although home contracts increased, actual sales lagged last year by 5.8 percent  a carry over from the lack of housing activity during the holidays and first of the year.

The average sale price of a home last month was 156,497, a decrease of 4.8 percent from the average sale price of $164,397 in February 2007.

Fewer homes were listed for sale in February 2008 (3,538) compared to January (3,812) and February 2007 (3,417). The total number of homes listed for sale is now lower than the inventory level one year ago.

As inventory levels have been roughly thirty percent higher than normal for the last year or so, any leveling off in new listings is a welcome sign for the market as a whole, comments Hrabcak. The fact that the supply has been significantly greater than the demand has resulted in lower sale prices, lengthier sales listing periods and a general concern about housing.