Several years ago, while listening to a radio program, the term spin master was used. Cannot believe, today, that I did not know the meaning. When I first heard it I asked a friend, who was in local radio, if she knew the meaning; her reply was that she had not.
In my opinion spin masters make chicken salad out of chicken droppings. You hear them at work every time you listen to the news or read the newspaper.
Yesterday I reviewed our local MLS (Multiple Listing Service), the Metropolitan Regional Information Systems (MRIS) statistics for the month of October. I was only interested in those for the Fredericksburg VA area. This includes Fredericksburg and the counties of Spotsylvania, Stafford, King George, and Caroline. I looked at residential sales only.
At the end of October there were 3831 Active Listings in the area. During October 249 properties sold (actually went to settlement/closing/escrow). That indicates that if that trend continues we have a 15+ month supply of homes on the market.
Last month that figure was 16+ months. A downward movement. That is good! For Sellers that is.
This month the Average Sales Price as a percentage of Average List Price was 89.51% while last month the figure was 91.12%. That is no so good news for Sellers.
This month 196 properties went under contract. Last month the figure was 191. That (numerically) does not seem like much of a difference since this month there were 3821 active listings while last month there were 4000 (exactly). No good news but no bad news.
There was not much of a change for average days on the market either; 138 this month and 125 last month. If anything that was a little bit of bad news for the Sellers.
Is the glass half full or is it half empty? How do you want to spin it? Guess it depends on who you are talking with.
The media has convinced the public that "the sky is falling in" for the real estate market. The public believes it too. Statistics support it if you want them to. Sellers are seeing prices drop, marketing time increase, and their equity becoming less and less.
But wait a minute please. How about the Buyers? What do they see in all of this?
They could very well look at it as showing them that their options are opening up. Interest rates are still very competitive and home prices are declining. Average sold prices are declining ($326,920 this month versus $338,830 last month). That is good news.
But wait a minute, the median sold price this month was $292,000 while it was $300,000 last month. That is good news too.
Is it a buyer's market or a seller's market?
So, "How is the real estate market in Fredericksburg Ed?" you ask.
Unbelievable! That's my response and I am holding to it.
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