With just over 11 months of inventory there are less homes to choose from and with more buyers per home we may see a shift in our market. This 12 Month Low may have something to do with the banks stall in foreclosure over the robo signing? It is most definatly effected by sellers that do not want to take a hit in this downturn in the market and are holding on till values come back some to list their home.
Ok so I do not expect the 20 plus home sales per month to continue into the winter months. Although we Realtors (c) did sell an average of around 13 homes per month from Oct 2010 to May of 2011 in Teton Valley Idaho. I am definitely not expecting us to run out of homes to sell. I do feel we are at more of a balance than we have been for the past 2 years and for the first time in two years we have sold 11 more homes in a month than was listed. The only other month with more homes sold than listed was Aug of 2010 with 2 more than listed.
One thing that you will hear in the media and buzz of the industry is a shadow inventory of foreclosable homes that may hit the market. This concerns me as well and I have been watching for signs in the market that would indicate a large number of foreclosed homes hitting the market. Here is my theory: There is more of a pent up demand on homes than will be satisfied with this shadow inventory. My advise to prospective buyers that are waiting for further decline in the market - The limit of choices are going to be more of an impact on the value of their purchase than the further drop in prices. If there is much more of a decline.
Our absorption rate is also effected by homes that are listed above the market and stay listed. These are not likely to sell and skew our "Months of Inventory" numbers. Look at the graph above and notice the comparison to new listings and sold listings.
This is one of the best places in the World to live. Lets hunker down and help each other through this economic turmoil. Things will get better!
Comments (0)Subscribe to CommentsComment