How's the Market from Lupe's Desk
As I reflect on the last year, the largest change I have noticed in the real estate industry is how quickly things change! Interest rates, banking regulations, standard forms, prices, market trends all change at a far more rapid pace than ever before. I receive market updates daily and my colleagues in the lending industry receive pages & pages of new lending requirements each day.
You may have noticed the 14% decrease in the sales prices of 2009 vs. 2008. This is due to the fact that the majority of sales were short sales or foreclosures. Short sales & foreclosures sell for low prices to encourage buyers to take them "as is" and wait for months and months for a short sale approval. There were also fewer higher priced homes that sold and that is reflected in the median sales prices, as well.
Demand is high, prices are low, interest rates are low but appraisers are not reflecting this in their appraisals. While many of our listings are receiving very good offers, the appraisals can come in low-causing the sale to be cancelled or the Seller to accept a lower sales price in order to close the sale.
"Shadow Inventory" is our buzzword right now. Shadow inventory are homes that have been foreclosed on, but have not been listed for sale yet. Shadow inventory also includes homes that are in the foreclosure process and homes that appear to be in immediate risk of foreclosure. It is estimated that we have over a year's supply of homes that could flood the market and increase supply dramatically. Right now that sounds pretty good to me! If you have been working with me to find a home-you know how little there is for sale.
Hanson Ranch, the semi-custom neighborhood off Pioneer, is almost sold out. There are only 3 homes left to build & sell. It really is turning out to be a beautiful neighborhood. I am usually there on Sunday afternoon (open house) and would love to have you stop by and say Hello.
Posted at 10:16AM May 24, 2010 by Lupe Springer-Hodges in Real Estate | Comments[0]
