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January home sales keep slipping - Lowest level since NAR began recording

By
Real Estate Attorney

CNNMoney.com reported today that existing home sales (national) slid .4% last month to the lowest level since NAR began recording in 1999. This is disturbing, to say the least. With so many macro-economic factors pointing downward for the US economy, this hardly comes as a surprise.

What DOES seem to be a surprise, at least to me, is that we're feeling the effects of this downturn quite strongly even in the Queen City. We have all heard about the imperviousness of our local market and how our price levels seemed to be increasing, even as the rest of the country was in decline. Well, the most recent CarolinaMLS residential home sales report seems to tell a different story. In January, we had 2009 sold properties as compared to 2615 for the same period a year ago. Moreover, our active listing count has ballooned to over 27 thousand active listings as compared to 22 and a half a year ago. Lastly, average sales price is actually DOWN to 218k from 219k a year ago.

While this does not necessarily point to a full-blown recession in the local residential real estate market, it seems that it may be wise to keep an eye to these crucial figures over the next few months as the rocky economy bleeds into our supposedly " bubble-free local market.  They say that a rising tide lifts all boats; if so, it seems likely that the opposite holds true as well.

Deanna Casalino
Realty World J. Pavich R.E. - Estero, FL
Fort Myers Florida Homes,
Keep a positive attitude and continue to do the small things every day. Your persistace will see you through this bad time.
Feb 25, 2008 04:06 AM
Aaron Biek
Chapel Hill, NC

Thanks Deanna,

I'm not particularly concerned for myself though (I'll be fine), so much as interested in what this means for my local market.  Perhaps the recent buzz about Charlotte being one of the few "good" real estate markets left was a bit hasty.  More reports were released today claiming a 3 or 4 percent (depends on source) increase in real estate prices here over the last year.  These reports were based on national data running from October 2006 to October 2007.  My question is, if we have more recent data available that indicate something else is going on, why are we not talking about that instead of trends that are reflected in data that is no less than 4 months old?

I'm not a fan of being pessimistic, but is it possible we're just seeing what we WANT to see? 

Feb 26, 2008 09:21 AM
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL
Aaron - Welcome to Active Rain! You are off to a great start with this post.  Your market seems a lot more solid than what we have seen recently in Florida.  Congratulations on your first post...
Mar 01, 2008 08:07 AM