December Market Update

Visions of Sugar Plums Dance in Buyer's Heads...

Activity in real estate tends to remain slower during the busy holiday season as families focus on spending time together and plans are made for travel and holiday traditions. In preparation for the upcoming year, many people will use this time to begin thinking about home remodels, updates and getting their home ready for sale. Homes priced from $250,000 - $500,000 are currently moving better than any other price points in the market, and properties priced in the upper bracket continue to remain on the market longer. However, it’s important to note that homes continue to sell when they’re staged well and priced below the competing inventory.

We expect inventory levels to continue correcting to the number of buyers available in 2008 and we anticipate an ongoing slow change in the market throughout next year and into 2009. While credit standards are tighter, the market will continue to present great opportunities for buyers.

Always remember that real estate is local. Just like we don’t access national weather forecasts when we’re dressing for the day, we shouldn’t rely on national real estate reports to give us accurate information about our local markets. While national trends are important for economists to assess the economy, they are not all that useful in determining the metrics of a local market. A REALTOR® will always take into consideration many things when determining the value of a home, including the local competing inventory, location and nearby amenities.


Here's a few more interesting bits of info:

• According to the National Association of REALTORs® (NAR), 2007 is on target to be the fifth best year on record for existing home sales (units).
  

• Our market’s average home selling price is $266,000, down slightly (-.6 percent) compared to last year. We expect more price adjustments of 2 – 3 percent in 2008.

• Builders are pricing inventory at or below existing residential, which is anywhere between a 10 – 20 percent drop in pricing. New construction inventory has declined nearly 20 percent this year. This is good news for thinning out the number of homes for sale, which, combined with the average selling price coming down, indicates that we’re poised for a slow, steady market comeback.
  

• Homes priced from $250,000 - $500,000 are currently moving better than any other price points in the market.

• Upper-bracket properties continue to remain on the market longer.