Here is our Market Trend for the first 2 months in a more affluent area of PSL.
The slight increase in absorbion rate can likely be attributed to more foreclosure being released. Sales stayed fairly steady but inventory did rise.
It is my opinion that since our busiest price point continues to be less than 100K, and most sales in this price point selling at a median of 107% over asking, this particular market will continue to be very hot.
However, if shadow inventory continues to be released, we can most likely predict that sales prices will remain depressed as more inventory continues to be released, thus keeping prices steady.
We can only hope that REO inventory will start slowing as our economy continues to recover and this should allow our prices to finally start rising.
Latest trends show an increase of 25% in median price over same time last year, but that was with a decline in REO inventory release for last quarter, but now it appears this is starting to release again, so it will be interesting to see if we can continue our price increase pace.
And check out this report from Active Rain on predicted trends: http://actvra.in/tJy
| Jan-12Feb-12 | ||
| # Months Inventory | 10.89 | 13.13 |
| # Active Listings | 98 | 105 |
| # Sold Listings | 9 | 8 |
| Absorption Rate | 9 | 8 |
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