I have missed the last two Monday morning blogs. I was in real estate classes last week and it just slipped up on me. This week I was suppose to inform you about the local housing stats and plan to do that now. I will get back to a regular schedule starting next Monday. Check back then to see the latest subdivision highlight.
Now I want to take a few moments to update you on the local market. Click here for the latest stats that show March's sale numbers. As you can tell numbers are much better than February sales numbers. The bad news is the numbers are not as good as they were in 2009. Our local market is 'slowly' coming out of the slump. The question "how's the market?" is tough to define. There are certain areas and price ranges that still are selling well with prices steady. Overall, Lee County is behind the recovery in housing in the state of Alabama. In our classes last week we did some studying on this. For your own research check out: http://acre.cba.ua.edu/.
This biggest indicator of a slow recovery is number of months of inventory. I have spoken of absorption rate before and that is an important number when analyzing the market. In short, this number reflects how long it would take to sell off all inventory if we did not add any new listings. Our inventory for Lee County has been growing at a much faster rate than our selling. According to the ACRE website we currently have overall a 17.5 month supply. The good news is this number usually balances out during the peek selling months which are coming up. In the peek of the market, in summer 2005, this number was at 2.5 months. As you remember this is why listings sold very quickly then.
A few things to note. For any buyers this is not a bad thing!! You have plenty of inventory to choose between which makes home prices more affordable. Also, rates on mortgages are still sub 5% for most FHA and conforming loans (depending on credit, etc.). This is a great opportunity to purchase a home.
For sellers...it is critical to price your home in line with the market. If you are even 5% above market value buyers will not even 'notice' your home. Price is the biggest factor in selling a home in our market right now. It takes four things to sell a home: Price, Location, Condition and Marketing. Sellers have control over half that equation. You must price correctly and have the condition better than any competition. Location is set, so unless you are able to move a home to another lot this is out of your hands. The last part is marketing. A large presence on the Internet is essential as well as skills to work with the buying public and other agents to ensure the interested parties know about the property. I will say that no amount of marketing can overcome an over priced home or home in poor condition! Remember, you as the seller control those items.
I hope this gives you insight to our market here. Owning a home is part of the American Dream! It is important that if you are looking to buy or sell that you work with a real estate professional that is looking out for you. I encourage anyone in the market to interview and discuss what an agent's roles are in the transaction and find an agent that you feel will work best for your needs. I believe 2010 is an excellent time to buy or sell!
Ashley D. Miller - 334-332-8328 - http://www.ashleydmiller.com/ - ashleymiller@remax.net
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