Gwinnett Co. Market Update – Interesting to see the progress!!
We are experiencing the most interesting real estate market in recent history. The good news is we are seeing more and more positive data come in. Check out the charts and my take on the info below. (Click on any image for a full size one you can see.)
This one shows inventory over the last two years. It is DOWN 36% over that time. One of the big problems we have is the amount of inventory.
Home under contract during the same period has increased by 91% or almost double over its low in November of 2008. Much of that is first time home buyers getting in on the tax credit that the Feds offered to them. It is scheduled to end on 30 November but it is beginning to look like we might see an extension of that and possibly an expansion to some of the repeat buyers looking to move.
Home sold vs Under Contract is a big deal too. Lots of contracts fall out for lots of reasons. The buyer gets cold feet or finds out they don’t qualify for the loan or just change their mind. Lenders are tougher on qualifying but if you have a job and can pay back the money you borrow then you will probably get the loan you need.
I think this one is the most interesting chart in the bunch. It shows Median Sales Price of the homes sold, under contract and for sale. Since September of 2007 home prices have fallen 21% as have those under contract. Homes for sale are only 13% down. What that means is that the current market is OVER PRICED by about 8% and it is keeping some homes on the market longer than they need to be.
30 years of average home prices
Remember this chart from a few days ago?? This one shows Median Sales Price over 30 years. This reflects that 21% drop you see above AND shows you where are on the curve historically. We are about where we should be. We may be in for a little more turbulence as we see the stock of foreclosures hit the market. We may see a further decline of sales price but I don’t think so. There are more foreclosures coming but there are VERY FEW builders building anything. All the inventory that we normally see coming on line is simply not there and it will not be there for a while.
I don’t want this to get so long that you don’t have time to read it so I am going to stop for now but know that we are going to be OK and if you have specific questions or comments about the data then call me. I am here to help and I am never too busy for your referrals!!!
Thanks for listening,
Jerry Robertson
678-231-1578 Cell