WHAT IS THE REAL NEWS? IS PRICE THE REAL STORY? OR IS VOLUME THE REAL STORY?
Daily news items and agents' market reports that report monthly sales are telling only half of the story about the real estate market.
SPREAD THE WORD. The real story about the real estate market is not the dollar amount for homes sold. Average sold prices really obscure the real news. The real news is not that prices in Montgomery County for 2007 are 57% higher than in 2002. The real news is that sales volume for November 2007 was only 59% of sales volume for 2002.
Agents can't rely on national news or even local news for the state of our local markets. We need to do our own research and give our buyers and sellers the facts. Ifsales volume is included in a CMA, prospective sellers may make better pricing decisions.
HOME SALES IN FAIRFAX COUNTY FOR NOVEMBER 2002 THROUGH NOVEMBER 2007*
YEAR #SOLD PRICE
Nov. 2002 596 $491,332
Nov. 2003 682 $522,490
Nov. 2004 803 $637,812
Nov. 2005 663 $748,007
Nov. 2006 448 $720,790
Nov. 2007 361 $709,542
HOME SALES IN MONTGOMERY COUNTY FOR NOVEMBER 2002 THROUGH NOVEMBER 2007*
YEAR #SOLD PRICE
Nov. 2002 533 $442,206
Nov. 2003 592 $504,521
Nov. 2004 720 $594,663
Nov. 2005 575 $680,062
Nov. 2006 496 $689,066
Nov. 2007 313 $692,245
SHOW PROSPECTIVE SELLERS ALL THE FACTS.
- FACT: Sales volume has declined at a far faster rate than sales prices.
- FACT: Market reports that tell the price story are reflecting only what has happened in a time frame.
- FACT: Market reports that tell the volume story are reflecting buyer activity.
- FACT: Buyers are speaking with their feet, not their checkbook.
- FACT: There are 3445 Active Single Family homes listed for sale in Fairfax County as of 12/12/2007.
- FACT: There are 2633 Active Single Family homes listed for sale in Mont. County as of 12/12/2007.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.
* Detached Single Family Fee Simple.