October 18th, 2009 Categories: Market Updates
A mid-month snapshot of Montgomery County inventory shows that housing inventory continues to shrink, although at a smaller rate than for earlier months. During the course of a month, homes enter the market increasing inventory. Inventory is reduced when homes go under contract and when home sellers give up and remove their home from the market. With this in mind, looking only at inventory won’t reveal a complete view of the market, but it is a critical measure. Declining inventory results in fewer options for buyers and less competition for sellers. Here’s the overview:
Another important metric is the contract activity. Compared to last year, overall contract activity continues to be robust:
From last month’s review of contract activity, we see that a home’s price range is a big factor in a home’s demand. Also, comparing this snapshot of contracts with September’s, you’ll notice that the number of contracts for previous months was revised down. Why’s that? Once a home goes under contract, the buyer and seller must then get to settlement. In the coming days, I’ll post an article that walks through this process and how a contract can get derailed.
Your comments are always welcome below. Contact us anytime for any questions about the Montgomery County real estate market.