Two months ago, annual sales levels were down by about fifty percent. Last month they were down about thirty-five percent. This month, just 30% with 280 sales year-to-date versus 398 in 2007.
This is not a cause for alarm, despite what the national media are extolling. Annual sales were down in ‘07 from ‘06 and they are again lower this year from last. Bear in mind that real estate markets are similar to lumbering beasts, they don't speed up or slow quickly. They are more cyclical in nature. After a dramatic upswing (‘05 - ‘06) there is always a time when the pendulum swings back.
Some buyers are concerned that prices may continue to lower. And not to dismiss that concern, but housing is not like a consumable good. Buying a turkey during the week before Thanksgiving is wise because stores take a loss (this year of 72 cents a pound) to get you in the door.
Homes, on the other hand, will continue to appreciate; although the growth will vary from year to year. You may end up spending more in sales price now than you might six months from now, but you won't be losing money if you buy now.
The home you're looking at may not be there in six months. Even in this slower market, last week seven sold, four went under contract, five came on and eighteen were withdrawn or expired as listings. Read that as inventory down 29, up five.
Interest rates are also very low right now, allowing you to get even a better deal than just a lower price.
If your budget is in the under $200,000 range there are 72 homes currently available, up twelve percent from last year.
The $200,000 - $249,999 level also has 72 homes available, 42% more than a year ago. The selection of homes in the $250,000 - $299,999 range is up 30% in the number of offerings with 77 currently listed.
If your budget falls into the $300,000 - $349,999 or $350,000 - $399,999 price level, there are 31 homes in each, with a three percent and six-and-a-half percent increased inventory respectively.
There are fifteen percent fewer offerings in the $400,000 - $499,999 segment with 23 homes listed for sale. Last year we had twice as many homes priced from $500,000 to $599,999. There are now nine to choose from.
In the top level, homes priced from $600,000, there are 23; which is up seventeen percent from last year's levels.
It's taking an average of four-and-a-half months to sell a home and we have almost thirteen months of inventory. Last year it was taking almost the same amount of time to sell a home (slightly less) during this time of year, but we had 44% fewer homes and only about seven months of inventory.
If you're thinking of selling, we have almost seven months of inventory priced under $200,000. The $200,000 - $249,999 and $250,000 - $299,999 segments have fourteen and fifteen months, respectively. Whether you're looking at the low or upper $300,000's, there's almost seventeen months of inventory.
Homes priced above that have much longer waiting times. The $400,000 - $499,999 homes have 27.7 months of inventory and those priced from $500,000 to $599,999 are in a segment that would take over four-and-a-half years (56.3 months) to sell out. The top-priced homes ($600,000+) have 46 months of inventory.
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