Has the Real Estate Market Stabilized?
I read a couple of articles this past week that on the surface are contradictory. I tried to make sense of what I read below.
That depends on who you ask and what real estate market you are talking about: new homes or resale; national, local, or my neighborhood. The market that is important to you is the market in which you are buying or selling.
New home sales have been in turmoil in almost every market. November, 2009 sales figures are a good indication of just how much turmoil. The number of transactions for new home sales nationally dropped 11% from the October sales. That represents the lowest number of monthly new home sales since April, 2009. the median sales price is down by approximately 2% year over year, but up about 4% from the previous month.
The resale market shows a different story on the national market. Resale of existing homes in November surged to the highest level in nearly 3-years. About half of the transactions in November were first-time buyers taking advantage of the tax credit for first-time buyers. That tax credit was to expire November 30, 2009. It has now been extended until April 30, 2010 and expanded to include current home owners who relocate.
What does it mean for me?
Real estate is a local business. The only markets that mean anything to you, individually, is the real estate market you live in or want to live in. National market statistics cannot give you the true picture of what is happening in your neighborhood. Whether you are buying or selling, you need to know what the market is doing in your neighborhood. If you are a buyer you want to know what’s available and what is the average price of homes that are selling that meet your requirements. If you are selling a home you want information about comparable sales in your neighborhood.
- What was the listed price and what was the selling price?
- How long are homes on the market?
- What is the current inventory of homes that are similar to mine?
All of this data tells you if the market has stabilized in your neighborhood. A FREE tool for buyers and sellers in the Charleston Trident area is available at: