by Admin
8. February 2010 05:31
What goes up must come down...
Most markets are in decline as a result of the economic recession, problems in the mortgage markets and a hangover from the subprime mess. After years of a strong sellers’ market, sellers were reluctant to recognize the change in affordability as mortgage rates began to creep up in the middle of 2005. As financing and demand dried up, sellers were forced to re-evaluate their asking prices in an environment of excess supply and economic pessimism. The delay to re-price exacerbated the price correction.
Looking back on the real estate market in 2009 we find the second quarter, or spring market, had a 32% decrease of closed sales compared to the same time in 2008.
According to the Triangle MLS data, there were 21,983 closed transactions in all of 2009, down 11% from 2008. Overall in 2009 there has been a 6% drop in the average sales price.
Tracking the showings of seller listings, can help homeowners see how many buyers are actually out looking at houses, which helps predict future sales. In April 2009 there were 71,883 showings for the entire Triangle area but in December 2009 there were only 33,602.
Unemployment has complicated our housing market recovery. When the bottom of our market has been clearly defined, consumers are more likely to gain the confidence that they need to get in the market.
We will keep watching the showings on listings and number of pending transactions each month. The pendulum will shift and we’ll be watching and reporting.