Strong buyers market continues...
Due to the First Time Home Buyer increase in sales, a lot of these sales were pushed up and people that might have been planning to buy in July moved up their purchase to coincide with the tax credit. In the month of July we saw a decrease of 125 homes in our listing inventory, we have 5,604 homes on the market as of August 1st. This continues to put us in a strong buyer’s market with a listing inventory of over a 16.0 month supply. With the low sales in July this affects our month supply with a change of 5 months from last month. Our average list price has stayed below the $400,000 range for eleven months; we are currently at $377,052. In July we saw a decrease in our seller concessions, it is now 21.7%. Our average days on the market are 121. This is the first monthly decline in the number of homes sold when compared to previous year. The number of sold homes is down 32.3% from last month and down 22.2% from July 2009. Last month we had 517 sold units and this month only 350 sold units, last year in July we had 450 sold units.
In July we saw our first decrease in listing inventory of 125 units. We are about 204 units over August 1, 2009. We have 5,604 single family homes for sale in our MLS. The average list price of $377,052 is down by $3,515 from last month. The average list price has decreased by 8.1% from August 1, 2009.
Market Absorption rate – The number of homes sold in July, 350 divided by the current listing inventory, 5,604 gives us an 16.0 month supply of single family homes. This increased by 5.0 months from last month. We need to get this inventory back under 12 months. With rates where they are and plenty of inventory; we can get this number down.
Mortgage rates are the historically lowest they have been. The 30-year fixed-rate mortgage (FRM) averaged 4.44% with an average 0.7 points for the week ending August 12, 2010. We are now hitting historic lows in mortgage rates. Call me so I can show you or your clients how they can get the benefit of these rates. Information supplied by David Flory of Cunningham Mortgage.
According to David:
Despite all the media comments about our markets we are still lending money for residential mortgages. If a client has income and credit and some sort of down payment; they can get a mortgage. It goes to the basic three C’s – Capacity, Collateral and Character.
David Flory NMLS #91592
Cunningham & Company Mortgage Bankers