State of the Market

The last few weeks I have attended or spoken with people within our industry (lenders, new home sales people, appraisers, title companies, agents from other companies, home inspectors, etc.) at different networking events and I have asked them what they have seen or heard. What they tell me is everyone is complaining...that they haven't experienced a market like this...what are we going to do...all doomsdayer mentality language. You may have heard it or read it. I have told them about our company numbers through the end of March this year versus last. Anyway, we aren't as bad off as we think we are. Companywide, through the end of March, we sold 221 houses this year. Last year it was 244 - a difference of only 9.5%. The region's numbers are down 21.68%.

In approximately the last two months, inventory and sales are up. Inventory is up 62.3% and sales are up 12.5%. A substantial gap to say the least. My thoughts are that we are in the Spring market full force now. Spring Breaks are behind us as well as Easter and a lot of people who waited to list are now on the market. Activity is up at new home sites, selective open houses, and our agents were involved in several multiple contracts this past week.

As the Fed has eased in increasing the short term rates and mortgage rates have somewhat stabilized, I think we will be in for a good spring market. The National market saw an increase in sales of existing homes in March over February's numbers and new home sales saw the largest percentage of sales increase in their history in one month as well.

There was an interesting survey done about the bubble recently. 71% of consumers believe that there will be a decrease in housing values yet only 32% said it would be in their neighborhood - pretty amusing! It won't happen in my neighborhood, but look out for yours!