September's Sales Report Creates An Important Question
Well folks, Sepember's sales reports from the Pinellas Realtor Organization (PRO) are now in. After reviewing them it leads me to ask this question ... "When does a market correction start to become a market crash?"
We keep reading that the market is slowing and that this is simply a correction; that the market is cooling after several years of unsustainable growth and price expansion. We keep hearing about an "orderly adjustment" and we all keep looking for "positive influences within the economic framework".
Sounds like bureaucrat-speak to me.
Here's what's happening.
As usual, let's look at the absorption rate for single family homes and condos for September. The absorption rate is the inventory turn. It is calculated by dividing the number of units sold in the month by the total number of listings in the MLS.
The absorption rate for single family homes in Pinellas County for September was 7.0%. That is the worst absorption rate since PRO started reporting them in January of 2003. By comparison, the absorption rate for September of 2005 was 35.7%.
The absorption rate for condos last month was 5.3%. By comparison, in September 2005 the absorption rate for condos was 26.1%.
Single family home listings totaled 10,127 units in September 2006. Last September there were only 3,388 single family homes on the market.
Single family home sales last month totaled 706. In September 2005, 1,210 single family homes were sold.
Pretty sad. Tough time to be a seller. Good time to be a buyer.
Condo listings declined last month from the previous month. Last month there were 6,075 condos on the MLS list, but in August the MLS showed 6,130 units for sale. A year ago in September 2005 there were only 2,217 condos listed for sale.
Condo sales dropped. Last month only 322 condos were sold. In August of 2005 there were 593 condo sales. So, the reduction in condo listings can not be attributed to an increase in condo sales. It must be expired listings or withdrawal from the marketplace that is causing the reduction in condo listings.
Perhaps condo activity will pick up as we move more toward the traditional condo buying season. Let's keep our fingers crossed!
The single family home median price was $217,000 in September, and it has been steadily trending downward for months now. The median price for condos in September was $157,000. It's also been trending downward for months.
Year to date, overall sales are off 31.1% from last year.
Those are the facts, folks. What I'm looking for is a definition of a market correction. Perhaps one of you economist-types out there can supply it to me.
For more info on real estate in Pinellas County, visit my website at www.thestpeterealestatesite.com.
We keep reading that the market is slowing and that this is simply a correction; that the market is cooling after several years of unsustainable growth and price expansion. We keep hearing about an "orderly adjustment" and we all keep looking for "positive influences within the economic framework".
Sounds like bureaucrat-speak to me.
Here's what's happening.
As usual, let's look at the absorption rate for single family homes and condos for September. The absorption rate is the inventory turn. It is calculated by dividing the number of units sold in the month by the total number of listings in the MLS.
The absorption rate for single family homes in Pinellas County for September was 7.0%. That is the worst absorption rate since PRO started reporting them in January of 2003. By comparison, the absorption rate for September of 2005 was 35.7%.
The absorption rate for condos last month was 5.3%. By comparison, in September 2005 the absorption rate for condos was 26.1%.
Single family home listings totaled 10,127 units in September 2006. Last September there were only 3,388 single family homes on the market.
Single family home sales last month totaled 706. In September 2005, 1,210 single family homes were sold.
Pretty sad. Tough time to be a seller. Good time to be a buyer.
Condo listings declined last month from the previous month. Last month there were 6,075 condos on the MLS list, but in August the MLS showed 6,130 units for sale. A year ago in September 2005 there were only 2,217 condos listed for sale.
Condo sales dropped. Last month only 322 condos were sold. In August of 2005 there were 593 condo sales. So, the reduction in condo listings can not be attributed to an increase in condo sales. It must be expired listings or withdrawal from the marketplace that is causing the reduction in condo listings.
Perhaps condo activity will pick up as we move more toward the traditional condo buying season. Let's keep our fingers crossed!
The single family home median price was $217,000 in September, and it has been steadily trending downward for months now. The median price for condos in September was $157,000. It's also been trending downward for months.
Year to date, overall sales are off 31.1% from last year.
Those are the facts, folks. What I'm looking for is a definition of a market correction. Perhaps one of you economist-types out there can supply it to me.
For more info on real estate in Pinellas County, visit my website at www.thestpeterealestatesite.com.
-30-
posted by Terry Ward at 4:13 AM
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