BLAH
The median home price increased to $255,000 even while the inventory of homes for sale increased to 51,013, yet another new record.
May homes sales (5,795 and 77% of May 2006) were up 5% from April. The seasonal drift lower will likely start in June and last through January.
Median home prices for the year will likely peak at May’s $255,000 so the price will easily dip into the $240,000’s by the end of the year.
6 responses so far ↓
1 Wyatt Brown // Jun 25, 2007 at 12:53 pm
Wow! What a graph… I wonder what portion of these listings stats are related to new home inventory vs. existing homes.
It would be interesting to see a price congestion/inventory equilibrium projection graph, just to take some guesses at where equilibrium will exist over the next 18 months…
2 Cbass // Jun 27, 2007 at 6:45 pm
Wyatt Earp,
I wonder what portion of FSBO are not on that graph. I think that the FSBO is bigger today than it has ever been in history for the residential market. Just in my “hood” there are about 1 in 5 FSBO as anectdotal evidence. Every one thinks they are a realtor lately huh John.
3 John L. Wake - Realtor // Jun 27, 2007 at 9:49 pm
Clay,
Actually, I would have guessed that FSBOs as a percentage of all homes for sale would have declined because in the boom days it was much easier to sell your home by yourself.
How are the FSBOs in your neighborhood doing? Selling?
4 Wyatt Brown // Jun 28, 2007 at 10:53 am
The FSBO may be up, as many people who are selling, bought irrationally, and now are selling irrationally as well. People who just might not understand the buy-sell process as well as they should.
The overall inventory levels are staggering. However, sales continue at a fast enough pace that absorption is decent. We may see equilibrium again by next spring.
Interestingly, the Old Town market, with some of the oldest, funkiest and MOST expensive homes continues to sell very well. Better absorption than Pine Canyon and other upper-end hoods… hmmm….
5 Cbass // Jun 28, 2007 at 10:07 pm
Umm by “today” I meant the last few years as opposed to the 80’s or 90’s for example. Sorry about not making that clear.
The FSBOs do not seem to moving well, but then again neither do the properties listed with a real estate agent. So I can’t really be to much more precise as I just see the signs and do not really track the sales.
6 John L. Wake - Realtor // Jun 28, 2007 at 11:26 pm
I heard a Realtor say this so I just checked it out on the MLS and it true.
Of all the Scottsdale listings closed in May, 23% were only on the market 30 days or less.
That fits with my theory that a huge number of “sellers” out there are “hobby sellers” who aren’t motivated to sell. If they get “their price” they’ll sell but “their price” is above the market price.
If the economy crashed a lot of those hobby seller, now without jobs, would get real serious real quick and lower their prices to market or lower.
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