Real Estate Market Report
Regional Overview May, 2009
Market Index – Increased by 9 point s to 0.52, double the score from May, 2008.
New listings – 644 new listings, even with last month, and to last year’s 637 new listings.
Pending Ratio – 0.91, jumped UP 20 points from 0.71 last month, compared to 0.52 last year.
Listing Inventory – 2,126, up 700 listings compared to last month. In the long view listing inventory (at least in the Multiple Listing Service) has been declining for the past year- in May 2008 there were 2,679 listings on market. However, a significant number of “active” listings actually have offers (particularly in a short sale) so this number is probably inflated.
Sold Listings – 514, compared to 502 closings from last month, almost even with a year ago. A clear sign of how far back we have slipped. Interest rates are rising which could slow things down.
Absorption Rate – 4.1 months, compared to 7.3 months last year.
Average Sales Price –are mixed, up and down by area, overall down 8.4% compared to a year ago.
Conclusions
-For Buyers –The inventory level is 20% lower than last year, sales are up by 40%, so buyers are buying and the bad news is that the amount of listings from which to chose is declining. The Calif. Association of REALTORS announced a new home buyer insurance program that will pay up to six months of mortgage payments if you lose your job in the next 12 months. INVESTORS – some properties are so cheap that they will cash flow positive from day one.
-For sellers – inventory is shrinking, and in at least one area the average price went UP this month. If you need to sell or are planning to upgrade to a larger home ask me about my Highest Value Property Audit to find out how we can sell your home for top dollar.
