July 2007 Market Update

Not very often is the Media correct, but they are this time in saying that sales are still down but that prices are stable. Our statistics for each of our cities confirm that. Now, let’s evaluate why this may be happening…

The same paper mentioned that DR Horton announced their new home sales dropped 40%. We are not too sad about the builders having to re-evaluate as we have to constantly in the pre-owned market. And they are evaluating, not wanting to be stuck with a lot of inventory, and are offering “wonderful” incentives to get the buyers in. The builders are also being hurt with the tightening of money in the sub-prime market which means some buyers that should not be buying really can’t get a loan right now! That was the source of a lot of our foreclosures! The inability of the new buyer to keep up with the tax increase and the payment increase with the adjustable interest rate and with the 100% loan and adding 3% in closing costs, they couldn’t sell their home so walked away. (Sometimes there are ways to help those sellers that are “upside down” if you would like to refer them to us to see if we could help.)

We do see the prices stable and going up some which is so good. (We won’t mention the possibility of the higher priced homes selling, nor the fact that so many sellers are raising their prices to include the buyer’s closing costs!) David Fair with Hexter Fair Title Company evaluated our statistics and realized that our entry level buyers are not coming into the market, thus, being down in numbers. The middle price range is consistent as in years past, but the luxury homes over $600,000 are selling better than the previous year. If any of you have houses in that price range, we can talk!

The National Association of Realtors states that you should have an offer after 12 showings. I am afraid that is just not our market. We have evaluated our listings and the time it takes to sell and I have a range from 3 days to 87 days, but the average is 25 days before we go under contract. That is a long time when your house is on the market and showing every day. Of course if you are getting 5 showings a week, at that rate it will take us over 4 more weeks to find that right buyer. I am sure with how hard you work in getting the house ready to sell and with our hard work in marketing your home, my statistics for days on the market will remain above the average, even in our areas!

There is really no magic “pill” to get your house sold. Price and condition still remain paramount --- and hard work on both our parts being partners in this process is very important! We are selling houses!! We are stable and can’t do anything but do better in price and time on market in our area. Interest rates, employment rates, weather, great “Sunbelt,” and low cost of living with gorgeous homes and lots of square footage are all on our side!

Happy showing!!