Hello again Trendwatchers,
As the attached spreadsheets will show you it is proving to be a lackluster year for sales here on Oconee and Sinclair. This is certainly not news. While there is now some evidence of stabilization in the hardest hit markets and hints of a perceived bottom there, our area here is showing some signs of playing catch up. A wave of subprime has fairly well washed through the market but the current economic situation and the rising unemployment rate is continuing to fuel some foreclosures.There's more than there was a year ago. Despite this fact, we still have it better here than much of the rest of the state. Georgia's overall unemployment rate is now in the double digits at 10.1%. However, the Mid-Ga. region which includes Putnam co. is at 8.6% and the Northeast region which includes both Greene and Morgan county stands at 9.2%.
If you wonder why I frequently stress this market segment it is simply because it is the market segment that is most active for real estate sales and almost all sales are affected by it. The townhomes and condos that were built late in the building boom are seeing the most negative activity and virtually nothing there is selling for what would be considered fair market value. There are now more waterfront properties overall coming to market as well. The plus side is the fact that inventory has not increased much and those sellers who are comfortable are taking a pass on trying to list their properties in these harsh sales conditions. Many homeowners in the area were successful in refinancing and will now sit tight until things get better and the sooner the troubled properties wash through the system, the better it will be for everyone in the marketplace. It will be very interesting to see what the 3rd quarter of the year brings. If the foreclosure rate declines overall and the properties that were purchased by investors come back on the market at higher prices without the competition of distressed REO pricing then we could begin to see the revitalization of the real estate market.
Till the next time, Chris
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