THE MARKET
Active Homes on the Market as of 4/30/08: 26,171
Active Homes on the Market as of 4/30/07: 27,757
Change: - 6.06%
Homes Under Contract as of 4/30/08: 6,287
Homes Under Contract as of 4/30/07: 6,417
Change: - 1.85%
Homes SOLD in April 2008: 4,265
Homes SOLD in April 2007: 4,395
Change: – 3.05%
WHAT IT MEANS
As I mentioned last month, these YOY (year-over-year) statistics are tough to get a handle on because the rules of the game when it comes to financing were completely different 12 months ago.
It has become so much more difficult for many buyers (and investors) to secure financing that one would logically presume a falloff in sales activity, yet that is not the case.
ACTIVE inventory has fallen by more than 6% from one year ago. There were an additional 1,586 homes on the market in April of 2007. Falling inventory is a key indicator of a firming market.
We have about 2% fewer homes under contract than a year ago, and there were about 3% fewer sales in April of 2008 than in April of 2007. With the changes in the mortgage market, however, these numbers still look pretty good.
Now let's drill down a bit further:
The number of active condos on the market has fallen by 17.13% from one year ago. With 80% of our foreclosures priced at $240,000 and below, the condo market has been hit hardest of all. However a 17% reduction in inventory suggests that renters are investors alike realize its cheaper to own than to rent now in many areas of town.
Active Homes on the Market as of 4/30/08: 26,171
Active Homes on the Market as of 4/30/07: 27,757
Change: - 6.06%
Homes Under Contract as of 4/30/08: 6,287
Homes Under Contract as of 4/30/07: 6,417
Change: - 1.85%
Homes SOLD in April 2008: 4,265
Homes SOLD in April 2007: 4,395
Change: – 3.05%
WHAT IT MEANS
As I mentioned last month, these YOY (year-over-year) statistics are tough to get a handle on because the rules of the game when it comes to financing were completely different 12 months ago.
It has become so much more difficult for many buyers (and investors) to secure financing that one would logically presume a falloff in sales activity, yet that is not the case.
ACTIVE inventory has fallen by more than 6% from one year ago. There were an additional 1,586 homes on the market in April of 2007. Falling inventory is a key indicator of a firming market.
We have about 2% fewer homes under contract than a year ago, and there were about 3% fewer sales in April of 2008 than in April of 2007. With the changes in the mortgage market, however, these numbers still look pretty good.
Now let's drill down a bit further:
The number of active condos on the market has fallen by 17.13% from one year ago. With 80% of our foreclosures priced at $240,000 and below, the condo market has been hit hardest of all. However a 17% reduction in inventory suggests that renters are investors alike realize its cheaper to own than to rent now in many areas of town.
Days on market has fallen to 103 for single family homes, a decline of about 5% from one year ago.
Days on market is a very deceiving statistic, in my opinion, because you have a mix of overpriced homes on the market that will likely never sell and occasional "screaming deals" that get picked off in two or three days. From all that, you get an "average", and I just don't know how much you can figure out with this number.
Well priced homes in good areas sell quickly. Overpriced homes in down areas do not.
My best advice here is for us to really thoroughly analyze what's happening in your subdivision, because submarkets are everything right now.
It's a "professional's market"... so choose your counsel wisely.
