As we wind down for 2008, the stats are not looking any better. Historically, November and December are slow months but even compared to November 07 our numbers are way off. Last November there were 44 single family residential homes sold, this November only 11 sold, down 75%. The average sale price was down 50%. Pre-crisis, the majority of homes were selling in the 2-3 million range. November 08, the largest number of homes sold in the 1-1.5 range. People are definitely feeling (for some they actually are) less wealthy and it is reflecting in their home purchases.
We are seeing more and more price reductions and a few pretty good deals. The lending environment has eased a bit, and there is talk of rates coming down even further. This may bring some additional buyers into the market.
Our inventory of new listings is down about 4% year to date over last year. Less inventory is good. Many sellers have realized that if they don't have to sell, they are better off keeping their home off the market. Motivated sellers, those who understand the market conditions, are the ones securing the deals. There is still so much uncertainty in the economy and stock market. Until we have a better understanding of what we will have to deal with in 09, I don't anticipate much change in the market.