November 21st, 2009 Categories: Market Updates
How low can you go? That’s the question for housing inventory in Montgomery County. Total available homes dropped 6.5% from mid-October. For the year, inventory is down over 34%. The total number of distress sales has been flat over the last couple of months. Since total inventory has shrunk, distress inventory is a larger part of the total – about 27%.
Compared to 2008, transaction volume is blazing. Volume in October was nearly double last years’.
Some of these contracts won’t go to closing, but this still shows that our market is hot compared to 2009. Prices have come down this year, but just about all price ranges have seen increased activity. Are we reaching the “bottom” of the real estate market? These stats tell me “absolutely”. Low Inventory + High Sales Volume = Higher Home Values. The only exception would be for our most expensive homes. Here’s a view of this year’s sales activity by price range compared to 2008:
Low interest rates and shrinking inventory have a big impact on buyers and sellers. Buyers looking for lots of bargains will be surprised to find fewer homes in the bargain bin. Sellers in many market segments can hold out out for higher prices compared to even just a few months ago.
Contact us if you are planning to buy or sell in Montgomery County in the coming months. Understanding the market dynamics in your particular area and price range is critical to get the most from your home sale or purchase.