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As we approach the end of the quarter there is some concern that the housing market is losing traction and a "double dip" is coming.  In fact, sales did decline nationally by 2.2% from April to May.  However, May 2010 sales were up 19.2% over May 2009. 

In the West (which Colorado is considered to be in), Sales rose 4.9% in May and median price increased by 7.4%.  The sales of distressed properties and foreclosures also declined. 

The worst housing market is in the Northeast where sales fell 18.3% and the median price fell 2.2%.  The Midwest and South remained relatively unchanged -flat. 

I use a proprietary technique I developed to forecast "futures" markets for Boulder County.  This is what I see on the horizon:

Pipeline sales for the entire county are going to be down substantially in June and July because contracts to purchase homes are down by 26%.  This is a result of the tax stimulus expiring and the tight credit markets. Inventory is on the rise as a result and is up 6%. 

On average the number of homes under contract vs. the number of homes for sale is down by 6% as of today.  

What does this mean for you:  If you are a seller it is still time to be conservative with your pricing.  Buyer's should look at this as the very best opportunity to buy because prices are still soft but beginning to firm and interest rates are an ultra low 4.5%.