August 2011 Market Update

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As each month ends, I get itchy, wanting to know what the sales numbers looked like for the month.  I always wait a week or so to make sure all the data gets recorded, and then I publish my market updates.  And this month I have some good news!  While the market certainly wasn’t stellar, at least we had decent volume.  132 single family houses sold in August, at a median price of $151,000.   There are currently 1488 houses on the market in the county, which represents about 11 months worth of inventory at the current rate of sales.  A “healthy” market it 5 months of inventory, so we still have a way to go, but at least some of the inventory is moving.

Depending on who you listen to, August saw 30 year interest rates drop to the lowest rate in between 30 and 50 years.  Money is dirt cheap, and so are houses.  So why isn’t the market taking off like a rocket?  Two reasons….tight lending requirements, and a lack of consumer confidence.  Even though rates are at historic lows, the requirements to *get* that cheap mortgage have stiffened, keeping a lot of willing buyers out of the market due to an inability to borrow.  Any many would-be buyers are just flat scared.  They don’t know if the market has bottomed or not, don’t know if their job will go away, don’t know where the economy is heading, and so on.  With all that uncertainty, a lot of folks are just staying on the sidelines.

So with a lot of competing inventory and a skittish public, what is a seller to do?  Two things…fix it up, and price it right.  With some many houses to choose from on the market, buyers can afford to be picky.  They are looking for houses in move in condition, lots of bells and whistles, and at a good price.

If you have got a house that you can’t seem to get sold, call me.  I am still buying houses, and I can buy your house in as-is condition and close fast.  Give me a call at 763-7355, and let’s get your house sold!

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