These latest graphs show some interesting and positive trends. This is the fourth monthly update with charts and analysis. If you would like a copy of past updates, please e-mail me and I'll send them to you for your reference. As the summer season fades, we should be making our plans for the first quarter of '09 right now. Lots of business happens in the fourth quarter. Get yours now while you prepare for next year's business!
We have good reason to be encouraged by what this chart reveals. The blue "Active Listings" line has made its seasonal downturn. Our optimism is justified in that historically, our inventory levels peak in the beginning of October and then decline sharply through winter. This current decline began in July and shows good downward trajectory. In this market climate, it is imperative that we are cautious with our optimism especially when we are counseling our clients as to their options.
Our market seems to be fluctuating between improvement and disappointment. This is a good indication that we have hit the "bottom" and are poised for a recovery. That said, our recovery will most likely be very slow and could be upset by any one of a number of factors that we have no control over. The key for buyers is to BUY NOW! Interest rates are great....today, and sellers are highly motivated. Neither condition is guaranteed to last. As a matter of fact, these conditions are GUARANTEED to change and probably not for the better for buyers. For our sellers, this is a time to take full advantage of a possible continued upturn in buyer activity. Get it sold now! If interest rates get back up close to 7, buyer urgency and motivation will evaporate.
This chart could not be easier to analyze. Prices have taken a substantial drop to the lowest level in years and, not coincidentally, our pink "Days On Market" line has been heading down sharply at a time of the year that we usually see flat or, more often, rising days on the market. This downward trend seems to have paused slightly but with education, reason and some credible professional advice, our seller clients will do what is necessary to take advantage of this great opportunity to sell. Our buyers, with our sound counsel, will jump at the chance to buy at the lowest prices in years at interest rates that rival those of the "boom" years. All this with lots of inventory, cooperative sellers and the ability to make the decision to buy without worrying: "How much over the asking price will I need to offer?". Buyers are responding to the positive buying environment!
This is truly a season of opportunity! Remember, the foundation for a successful '09 should be well underway. My stats show that a significant percentage of buyers and sellers start their inquiries and searches in January and February in anticipation of a spring or summer move. This means that if you make your moves or spiff up your marketing during the "slow" months of winter, by the time you get the wheels on your wagon, the horses will be hitched up to someone else's wagon and moving toward the horizon. Trying to get them back after they've had apples off another tree is difficult. Have your apples ready in December and January or you'll be "hoofing it" in April!
If you think it's time to change your "latitude", I have a path for you to follow to success.
Disclaimer: Horse analogy not directed at any particular person....or candidate. :)
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