Today I got the usual question about our local Real Estate Market from a group of medical people (friends) and I had some hard truth to tell! Our 2nd quarter of 2009 is not performing as well as I'd hoped!
I'll try to give you a few numbers, just so you can chew on them for awhile.
The volume of dollars in residential sales in areas 1 - 10 for the 2nd quarter of 2007 was $136,484,281.
The volume of dollars in residential sales in areas 1 - 10 for the 2nd quarter of 2009 was $96,306,411.
The average price of a residential home in areas 1 - 10 for the 2nd quarter of 2008 was $204,023.
The average price of a residential home in areas 1 - 10 for the 2nd quarter of 2009 was $191,845.
I compared the volume for 2007 to 2009 just because that's our all time high in the last few years. 2008 volume was $124,045,825.
We've also lost volume in number of sales. In 2008, during the 2nd quarter, we sold 608 units, in 2009 during the same period we sold only 502 units.
Take heart, those who priced their homes correctly for this market struck paydirt: 222 of those 502 units that sold in the 2009 period were under contract in less than 30 days!
Only one home over $500,000 closed during that quarter!
FHA loans are cooking right now with more FHA loans than conventional for the first time in 4 years. 222 FHA loans to 161 conventional loans. Just to compare, in 2007 FHA loans were 85 and conventional loans were 466 (those were the days my friend).
More homes are qualifying for FHA loans with a few minor defects this year, where as for the last couple of years we had way more conditions that needed to be fixed prior to closing. Appraisers are looking hard at Value for the neighborhood.
Lenders are hoop jumping through more and more, ever-changing underwriting, they must sit and wonder, what the heck will I run into on each and every loan. If you have a decent credit score, a job and a good debt to income ratio, you can get a loan. Oh and don't forget the first time home-buyer tax credit, I've had a few of those happen, and it really makes the buyers happy. I love happy people.
I tried to check my crystal ball to see what our future holds, but all I see is fog! Remember to price your home for the current market, and it should sell. The best homes go for the most money. After all, as a buyer will say on almost every house hunting excursion lately, "I'm lookin' for a deal...I can afford!"