2nd Half 2009: More "Doom" or More "Opportunity?"
In spite stabilizing sales volume numbers as reported last month,” REOs (bank foreclosures) and short sales continue to put downward pressure on local home prices.
I equate a lot of what’s happening with this on the slow, yet gradual, absorption of distressed properties (including short sales), which, in my opinion, are skewing lower the entire county’s average home price number. My guess is that this trend will continue until most, if not all, of these “toxic properties” have been cleared from the market place. How much longer, you may ask? . . .
There is speculation that there will be “another huge wave of foreclosures” caused by the default of adjustable rate “liar” loans that are scheduled to reset to higher interest rates in the next several months. However, if the current rate of distressed property absorption is any indication, if this “new wave” actually materializes, it’s likely that these homes too will be smartly snatched up by a 2nd battalion of ready, willing and able buyers. The reason for this is that with all of the uncertainty these days, first time buyers and investors are looking for something “tangible” with which to invest. Real Estate addresses that “tangible” and may continue to do so for the foreseeable future.
That said, and as I’ve been saying for a while now, rates are about as low as they will most likely get. If you are looking to buy you couldn’t have picked a better time-- especially with prices at an all-time low.
If you are thinking of selling, these same great rates still play a big role in getting your home sold. If you are thinking of doing either, call me so that I help you
find the perfect house or get your home listed before rates go up; and, believe me, they will—especially with all of the new inflation-causing “stimulus money” floating around out there!
Current Market Numbers The total number of homes sold for all areas (covered on my statistics page) thus far for 2009 is 459; last year’s total this time was 524; so for last month, we are down volume-wise, year-to-date, but down by only one percent when comparing the last two 12-month periods. The current average price of a home is $487,000 (see stats page). 2008’s average price was $564,000.
Additionally, the average number of days that homes are currently spending on the market is 111. 2008’s average was 110. Remember, this “Days on Market” figure is determined by the time a home goes onto the MLS and when it is reported as having been placed into escrow and noted as a “pending sale.” The current average list-to-sales-price ratio is just under 94 percent. 2008’s average-list-to-sale-price ratio was also 94 percent. Lastly, the current inventory of unsold homes is 7.60 months. 2008’s average was 7.37.
Stay tuned to my next blog entry for more statistics from the beautiful Central California Coast!
Copyright 2009
Posted at 01:07PM Apr 30, 2009 by Paul Pickering in Real Estate | Comments[0]
