At the beginning of the month there were 701 single family homes listed on the MLS in the data search area I report on. That is an amazing number for this growing community. 255 of those listings were of the new/never lived in variety, i.e. new home construction. The remaining 446 were existing homes for resale.
Inventory continues to go up and sales have slowed. The news isn't all that great for next month either I'm affraid as there were only 54 homes under contract in the month of June. I still say that the price point is too high on the asking side. I believe there are buyers in the area, but these buyers are not the investors... they left the party late last year. Buyers are being careful as to not buy today at higher prices only to watch the value of their new home go down in the coming months.
If you are thinking of selling the price point is the biggest factor you have to consider. Apparently the many people who continue to list at even higher prices haven't caught on as of yet.
This chart looks at the monthly numbers of new listings and sold homes for the months during 2006. Click on the chart for a larger view.
The chart below looks at the average asking price vs. the average sales price per unit. Once again click for a larger view.
The numbers lead us to think that this is not the very best time to be buying property. Buyers are faced with a double edged sword with interest rates moving upward. Yes be aggressive and try for a better deal in price when entering negotiations, but keep in mind that with rising rates that at whatever price you land on the mortgage payment factor is rising.
Buy a home today if you are in the market for a place to reside in. Don't buy today if you are investing unless you come across a great deal. I suspect the market will continue to be like this at least through the end of the year. Hopefully prices reduce a bit after investors who were 'flipping' properties are out of the market.
Buyers... be aggresive at the bargaining table. Sellers... be forward thinking, research your market and price accordingly.
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