July Newsletter
Market at a glance:
Active SFHomes July 2008……………………….10,643………. This represents a +/- 25% increase in available homes over July 2007
Pendings as of July 15th 2008 are down 53% as compared to July 2007
Avereage # of sold homes per month for SFHomes = 1,507
Number of months available supply = +/- 7 months (11,172/1507 = +/-7)
By definition, our market is characterized as a Buyer’s market due to the number of months of SFH supply available. As a rule, if supply is 5 months or less we are in a Sellers market and greater than 5 months would be considered a Buyers market. The most compelling argument for a Buyers market rests with summer activity. Historically, May-August are the most seasonally active months for Residential Real Estate sales. Our local selling season has been good as compared to most markets across the nation, however it would be considered less than robust for what Austin is accustomed to. With the nation fearing recession, interest rates subject to upward pressure, and the cost of fuel and food way out of line, it is likely our local market is beginning to feel the effects of the national economic stress. Economic uncertainty invariably breeds fear. Fear in return, breeds economic caution which tends to show it’s effects first in big ticket items such as vehicles and housing. True to code, we are beginning to see the slow down not only in our local real estate market, but also in the overall Austin economy.
The take away:
Buyer’s tread cautiously while employing good study and patience.
Seller’s, remember, there is always a healthy real estate market as long as you are priced within its boundries. Pricing is everything.
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