So, How’s the Market? June 2007
These next two months, June and July, will tell the tale of
The inventory is lower today than 12 months ago. May 2006 was when the
2007 2006 % Change
Active Listings 30145 30946 <2.6%> down in one year.
We anticipate to see a normal increase in inventory, but 2007 will not meet the higher inventories of 2006. When smaller inventories happen for the next 3-4 months, homeowners will see properties start to sell faster than they have the first half of the year. When properties become less available, prices go up. It’s a good time to buy to homes in
As we mentioned in May, we need to watch the sold data and where the trends are going to fully feel confident the market has turned the corner. Currently, we are seeing sold data to continue it’s up and down numbers. One month it outperforms last year, the next month it drops back. The best analysis to consider right now is how well is the market performing year over year, versus month over month. Here’s what is actually happening in both arenas.
May 2007 2007 YTD May 2006 2006 YTD
Sold Properties 5022 19121 5156 19792
Although the number of closings for May 2007 reflects a 2.6% reduction in number of units closed from last May, this number is just a snapshot and the true trend is that from June through December of 2006 the market took a pretty significant downturn and by all indications the 2007 market is moving upwards. The rational for this assumption is the number of sold properties in April 2007 was 4363, resulting in a 15.1% increase in May sold and closed properties month over month.
The 2007 year to date figures are off slightly from 2006, 3.4% fewer sold units in 2007, but this 2006 number reflects a fairly robust first 5 months of 2006. We anticipate this sold number of closings to cross over in July of this year to show that 2007 will outperform 2006 based upon the growth in the first 5 months of 2007.
Properties Under Contract show what potentially will close in the future. Currently in June of 2007, the marketplace is showing 7415 units currently under contract. Surprisingly, this is the identical number from one month ago. What are the odds of that? The most important part of seeing the Under Contracts stay the same is that the number of closings went up, but the under contract potential didn’t go down. This is good news for future months to come for closings.
What should buyers and sellers do today to best position themselves for the summer selling season?
Seller Tips:
1. Be the first or second priced property in the neighborhood.
2. Have your home staged to get it ready to sell for today’s buyer pool.
3. Take advantage of virtual tours, as all surveys indicate 5 out of 6 buyers on-line will only look at homes with a virtual tour.
4. Get your proper display in different print and electronic mediums that direct buyers to your on-line presence.
5. Consider buying the rate down for the buyer. A 2-1 buy-down would cost approximately 2.5% of the loan and a 3-2-1 buy-down would cost approximately 4.75% of the loan. These incentives will helps seller sell faster as the lower rates will bring more buyers to your home.
Buyer Tips:
1. Get pre-approved to act like a cash buyer. You will be able to negotiate a better pricing strategy if you are approved by your lender.
2. Consider a financing package that would have the seller pay for a more convenient interest rate for you. Most lenders will qualify you with the lower payment which allows you to buy a little more house.
3. Have sellers pay for your closing costs. Paying a little higher price is better than paying cash for the closing costs.
