Tip O'Neill once said: All politics is local.
Such is true right now with real estate. National coverage of the housing market's ups and downs paints a broad picture.
But real estate issues that may affect you are local.
"How's business," I've been asked repeatedly. And before I can get the answer out, the questioner volunteers, "Slow, huh?"
Actually, I'm slammed.
So let's get to what's going on in the local market.
►Inventory is at an all-time high between Spanish Fort and Point Clear. More than 1,000 homes on the market is cause for concern, but it's also the product of this area's growth. Right now, the inventory has helped to increase the time needed to sell a home.
►The days of speculative pricing are all but over. Offers presented by buyers' agents are relying on comparable sold statistics and sellers are negotiating accordingly.
►Whether it's a buyers' market or not depends on where the home is located and its price. There are soft markets here and soft price ranges.
►Two-thirds of the houses sold on the Eastern Shore in the 1st quarter of 2007 were for prices under $300,000. But slightly more than half of the 1,050 homes listed at present are offered at prices exceeding $300,000. And of those 544 homes listed at over $300,000, 188 are new construction.
► After a slow 4th quarter in 2006 and a somewhat improved 1st quarter in 2007, the market seems to be turning around. For example, there were 256 sales in the 1st quarter of 2007. But there are already 180 houses under contract right now and waiting to close.
►Two national trends will continue to affect local home buyers in the coming months: tightening of mortgage qualification restrictions because of the number of loan defaults and the availability of homeowner insurance, particularly for older homes. Zero-down, no-document loans may already be a thing of the past. And national insurers are continuing to raise rates, raise hurricane deductibles and shut out segments of the market (try getting insurance for a home built prior to 1994 in Daphne or Fairhope).
On to the 1st quarter stats:
Fairhope/Point Clear: 87 homes sold with an average sales price of $331,707. This time last year, Fairhope had 118 sales with an average price of $340,131. Average time it took to sell: 156 days.
Fairhope is the weakest of the four areas covered here, with the only declining average sales price, and an inventory now at 547 homes, up from 334 this time last year.
Daphne/Montrose: 97 homes sold here in the 1st quarter vs. 104 homes in the same time last year. Average sales price rose from $265,016 to $272,256. Average time it took to sell: 127 days. There are 317 homes on the market.
Lake Forest: Much improved over the 1st quarter of 2006 when only 21 homes sold, Lake Forest had 44 homes sell, with an average price of $170,304, up from $157,703 during the same period in 2006. It took on average 122 days to sell and there are 93 homes on the market.
Spanish Fort: Only 28 homes sold in the 1st quarter, down from 39 homes in the 1st quarter of 2005 and 2006. Average sales price rose from $259,370 this time last year to $282,572.
For up-to-the minute information about the Eastern Shore market, home pricing or purchasing, feel free to call Janet English, RE/Max By The Bay at 251 591-2411.
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