Housing inventory is down to 6.4 for the month of October. That’s down from 7.6 in Sept. Note the high inventory was Jan, 2009 with the housing inventory at 21 months (meaning at the rate homes were selling and the number of homes on the market, it would take 21 months to sell all the inventory of houses). The current inventory numbers is largely due to pending and closed sales going up while new listings are down.
The time a home is on the market is down to 138 days from 158 a year ago. The price of homes sold is down 16.3% compared to a year ago in Oct. 2008. Median home prices dropped 14.5%.
Bottom line, short sales are priced low, take a long time to sell and typically sell for more than the list price, but are still sold for less than back in the real estate boom days. Home owners that don’t have to sell, are not selling right now.
The feds extended the $8000 first time buyer credit for all contracts to purchase entered by April 30, 2010 (must close by June 30, 2010), hoping to continue to stimulate the market.
The feds also passed a $6500 tax credit for repeat home buyers that previously owned their last primary residence for 5 out of the last 8 years and are buying a new primary residence. I think the fed is trying to get some of those home owners that don’t have to sell, to consider selling! For more info on the tax credit, check out: wahomeowners.com
Meanwhile, buyers must be prepared to jump through hoops with the lenders to get their home loan. The pendulum has swung from liberal to conservative when making home loans. Interest rates and home prices are incredible.
These residential statistics are based on monthly figures reported by RMLS™ of which I am a member.