Hello and welcome either back or you have discovered my blog for the first time. Here is the June 2010 market update. Lets start out with an overview of the graph year to date.
Pretty standard increase in total actives and sales as we transition from spring into the "lets get moved before the kids start school in the fall" selling season. One trend of interest. Look at the new listing pullback after April. A bit of seller trepidation after the tax credit. Although showing traffic did take a hit right after the credit expired overall sales are up 3.6% from June 2009. This is still a bubble from closings on homes under contract in April that met the deadline and closed in June. Tracking sales and price over the next couple of months will be a better indicator of the overall market health as the effects of the tax credit go away.
Here's what I can tell you about the overall health of the current resale inventory. Trying to find homes to show buyers was a total pain at times last year. Many sellers were on the sidelines and a large percentage of listings were short sales and foreclosures.
Even with the pullback new listings are up 4.6% from June 2009. If pricing holds steady this trend should continue.
This will be the number I track over the next few months as we try to gage the effect of the tax credit going away.
To sum things up. If pricing holds steady and interest rates stay at the historic lows they are at currently. It is time to buy! Another factor is the rate of new foreclosures is slowing this past couple of months. Fewer foreclosure means less negative impact on current prices. All that will happen going foreword is both prices and interest rates will continue to creep up. If these trends ring true folks will look back in 2011 and say oops we missed it!
So once again, if you have credit and job security its time to buy. Call Me!
Until next time, Take care,
Mike