The spring market is here and it looks healthier than many expected.

May is traditionally the busiest month of the year in terms of the number of homes sold. Last month there were 1,290 single family home sales (94.6% of last April's volume) at an average price of $426,311 - compared with $420,354 in March). There's still no arguing with the 'year-over-year' price comparisons which are down considerably, but the average has been edging higher since the start of the year (average is up about 3% since January, median up about 1.6%).

Condo sales were almost identical to last year's numbers with 579 this year (vs. 581 last year) at an average price of 277,953, down from $284,056 in March and up slightly from the start of the year when the average was $274,919.

While sales have increased at a reasonable pace since the start of the year, the number of listings is down substantially. There are now 3.2 months of supply on the single family market vs 8.6 at the end of last year. Condo supply is 3.53 months vs. 9.09 at the beginning of the year. I think this is a key factor to watch for anyone curious about the direction of prices. With supply and demand in balance the way they are now, it's unlikely that house prices will make any 'major' moves in either direction in the short term.