A frequently asked question I hear is if there are any homes selling given current market conditions. During the 3rd quarter of 2008, we averaged a little over 660 homes sold per month in the Valley. This compares to 775 sold per month during the same quarter of 2007. While this is a fairly big drop, there is some good news in these numbers.
During September of this year 668 homes sold. This is a substantial increase over the 574 homes sold in September of 2007. Additionally, we are seeing a significant decline in the number of homes for sale. During the 3rd quarter of 2007 there was an average of 7,769 homes on the market. This compares to 6,857 homes this year. A couple of factors are driving the reduced inventory. Probably one of the biggest factors is that we have seen a very large drop in the number of new homes being built. Based on the data through September, I estimate there will be a total of 1,500 building permits issued during 2008 for single family homes. This compares to over 7,500 in 2005. With fewer new homes being built, we will continue to see the number of homes for sale drop. With fewer choices, prices should stabilize and gradually increase.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment