What's happening in the big wide world of real estate and finance these days?
The answer is way above my pay grade.
Locally, I can tell you it's a good time to buy. Lenders have money, the interest rate is very good and there are plenty of houses for sale.
If I could figure out anything more for our future, George Bush would be painting my toenails while Larry King interviews me in my living room.
Here's what did happen in the last quarter before the collective Freak Out over The Bailout, The Market and The Election.
Price corrections in the Eastern Shore housing market produced mixed news in the 3rd quarter: The number of homes sold rose over the previous quarter, but sellers took on average 5% off their list prices to make the deals happen.
Buyers gravitated to foreclosures, which represented 6% of sales, and to new construction, which accounted for 35% of sales. Yet of the 1,229 homes on the market from Spanish Fort to Point Clear, foreclosures make up only 2% of the listings, and new construction, 25%.
July was the hot month, with sales decelerating in August and September. Still, 265 homes sold last quarter compared with 227 sales from April through June. Average sales price fell slightly from $308,019 in the 2nd quarter to $298,974 in the 3rd quarter.
The number of homes currently under contract has fallen from around 110 for the last couple of months to 88, which reflects the lack of activity in the last few weeks.
This is a no-nonsense market: The houses in the best shape at the very best price are the ones that are selling.
Let's break it down:
Fairhope/Point Clear: 98 homes sold, up from 76 in the 2nd quarter and but down from the 105 that sold in the 3rd quarter of 2007. Average sales price was $359,262, down from $415,410 in the previous quarter. On average, sellers took on average 6% off the list price and the sales time stood at 200 days. There are 593 homes for sale.
Daphne/Montrose: 105 homes sold, up almost 40% from 65 sales in the 2nd quarter of this year, but down from 113 in the 3rd quarter of 2007. Average sales price was $289,832, down from $311,085 in the 2nd quarter of this year. Average selling time was 150 days. There are 374 homes for sale here.
Lake Forest: 28 homes sold, down from 36 in the previous quarter, and 38 this time a year ago. Average sales price dropped from $165,105 in the 2nd quarter to $153,965. Average days on market 144. There are 129 homes for sale here, a number reminiscent of the late ‘90s.
Spanish Fort: 34 homes sold, down from 40 homes in the 2nd quarter and barely down from the 35 that sold in the 3rd quarter of '07. Average sales price was $272,853, up from $268,372 in the 2nd quarter. Sellers took on average 4% less than list price. Average days on market: 169. There are 127 homes on the market. here, a new high.
For more information about real estate in Daphne, Spanish Fort, and Fairhope, please contact Janet English, RE/Max By The Bay, 251 591-2411
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