In-Depth Analysis

December 2009

Market-at-a-Glance

The Market-at-a-Glance section contains an overall summary of the trends described in our detailed articles.

A recap of the current market indicators are as follows:

1. Resale Listings – 40,372

a. The November listing count increased by 1,060 (2.7%) from the October count. This is the fifth consecutive month in which the listing count has increased between .2% and 2.7%. The total increase during that timeframe was about 8%. In the seven months prior to this most recent period the number had dropped 19,010 (a 34% decline).

2. Resale Sales – 7,494

a. Resale sales volume is up from this month in 2008 by 3,077 (69.66%) - (the 2008 figure was still very weak because of the credit crunch).

b. Resale sales volume is up 4,176 sales from this month in 2007 – (the 2007 figure was extremely weak because of the beginning of the credit crunch).

c. Resale sales volume is up 2,174 from this month in 2006.

d. Resale sales volume is up 144 from this month in 2005.

e. Resale sales volume is down -577 from this month in 2004 (the 2004 figure was also inflated by speculator activity).

f. Resale sales volume is up 1,801 from this month in 2003.

g. Resale sales volume is up 2,129 from this month in 2002.

3. Median Resale Sales Price - $130,000

a. The median November sales price increased $2,000 from October.

b. The median sales price is $125,000 below the June 2007 level.

c. The appreciation rate for the last seven months (April 2009 to present) is 21.86% on an annualized basis.

4. New Home Market

a. The number of New Home specs on December 11th had increased by 53 from the November 13th count to 1,461. The record level was in October 2006 at 4,692. Prior to February 2006 the record was 2,400 homes.

b. The number of new home subdivisions selling declined for the twenty-nine straight month. This month was down by 11 to 499.

5. REO – The percentage of resale properties sold which were Lender Owned dropped 4.1% to 39.5%.

Over the past few months spec inventory has continued to creep down – well into the normal range. I believe we are toying with a spec shortage.

Resale sales have achieved a level near or above the 2001 level for sixteen consecutive months after being below the 2001 level. It appears that the median resale price has reached bottom, but the recovery will be slow, and it will still be many months before the market returns to a healthy balance. The wildcards concerning market recovery continue to be the general economy, the foreclosure situationand the type and amount of government intervention.

The general press is reporting housing market information that is six to nine months old. The In-Depth Analysis Newsletter provides current information that you need to serve your buyers and sellers and to help them understand what is happening in today’s market.

Side Note

I believe there are the best deals available in the real estate market that we may never see again. If I were an investment counselor (I am not), I would say that if you have the need and the money, look for the deals and buy now!

Copyright® 2009 - This information is compiled and written by Ultimate Information Systems, Inc. Use of this article, in part or in its entirety, is expressly prohibited without written permission.  Click here to request limited rights to reuse this information.