Brother, January Was Pretty Sorry!
I guess I missed writing the January sales report for everybody. Actually, January sales were so dismal I just couldn't bring myself to write anything until now.
We'll start with the Absorption Rate for January, 2009. For single family homes, the AR for January was only 4.9 percent. That's a pretty large drop from December's 6.8 percent AR. Condo sales fell badly in January as well, down to 2.8 percent from December's 4.2 percent. AR, as you know, is calculated by dividing the number of units sold in a month by the total number of units listed in the MLS.
Single Family Home Sales
During January, the MLS had a total of 7,835 single family homes listed in the inventory. That's down from December's inventory of 7,930, but not down by very much. Sales took a real pounding in January. Only 381 single family homes managed to get sold during the month, as compared to December's 536 sales. What's more, the median price for a single family home fell a bunch, from December's median of $145,000 to January's $124,500.
Condo Sales
The number of listed condos for January increased from December's 6,593 to 6,701. So, if you're a condo seller this means your competition has increased -- just what you wanted to hear, I know. Here's some even more disturbing news for condo sellers. The number of units sold in January decreased substantially, from December's 280 sales to January's 189 sales. As you might also expect, the median selling price also took a nosedive, falling from December's median price of $140,000 to January's $125,000.
If you're a seller, none of this is good news. Sales are dropping. Prices are dropping. Competition is increasing. Not good.
If you're a buyer, this is all good news. Sellers are getting more desperate. Prices continue to fall. There's a wider selection of property from which to choose. All good.
So, why aren't more buyers out there grabbing up all these bargains? Perhaps we need to start recognizing the negative effect the overall economic situation in this country is having on people's motivation to buy. It's probably hard to get motivated to buy a new house when you read everyday in the newspaper about job losses by the thousands, economic bailouts of mortgage-based financial institutions and hardship at every turn. "After all," I can hear buyers say, "my job might disappear next. Then where would I be?"
Nevertheless, if you have a stable job, some money to put down and a good credit history, this may be the best time of all to go buy your dream house or condo. Remember, if you're a buyer waiting for the best time to buy, well, this may be it. Don't miss out. We've been in this housing downturn for over two years in this area. How much longer do you think it will last? How are you going to know when it's turning around? Just something to think about.
For more information on home sales in the Tampa Bay area, visit my website at http://www.thestpeterealestatesite.com/.
We'll start with the Absorption Rate for January, 2009. For single family homes, the AR for January was only 4.9 percent. That's a pretty large drop from December's 6.8 percent AR. Condo sales fell badly in January as well, down to 2.8 percent from December's 4.2 percent. AR, as you know, is calculated by dividing the number of units sold in a month by the total number of units listed in the MLS.
Single Family Home Sales
During January, the MLS had a total of 7,835 single family homes listed in the inventory. That's down from December's inventory of 7,930, but not down by very much. Sales took a real pounding in January. Only 381 single family homes managed to get sold during the month, as compared to December's 536 sales. What's more, the median price for a single family home fell a bunch, from December's median of $145,000 to January's $124,500.
Condo Sales
The number of listed condos for January increased from December's 6,593 to 6,701. So, if you're a condo seller this means your competition has increased -- just what you wanted to hear, I know. Here's some even more disturbing news for condo sellers. The number of units sold in January decreased substantially, from December's 280 sales to January's 189 sales. As you might also expect, the median selling price also took a nosedive, falling from December's median price of $140,000 to January's $125,000.
If you're a seller, none of this is good news. Sales are dropping. Prices are dropping. Competition is increasing. Not good.
If you're a buyer, this is all good news. Sellers are getting more desperate. Prices continue to fall. There's a wider selection of property from which to choose. All good.
So, why aren't more buyers out there grabbing up all these bargains? Perhaps we need to start recognizing the negative effect the overall economic situation in this country is having on people's motivation to buy. It's probably hard to get motivated to buy a new house when you read everyday in the newspaper about job losses by the thousands, economic bailouts of mortgage-based financial institutions and hardship at every turn. "After all," I can hear buyers say, "my job might disappear next. Then where would I be?"
Nevertheless, if you have a stable job, some money to put down and a good credit history, this may be the best time of all to go buy your dream house or condo. Remember, if you're a buyer waiting for the best time to buy, well, this may be it. Don't miss out. We've been in this housing downturn for over two years in this area. How much longer do you think it will last? How are you going to know when it's turning around? Just something to think about.
For more information on home sales in the Tampa Bay area, visit my website at http://www.thestpeterealestatesite.com/.
-30-
posted by Terry Ward at 4:32 AM
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