YTD Home Sales Up Thus Far July 5, 2010
The overall number of home sales is better year to date this year than it was at the same time in 2009. This is good news!
We have not been able to make that claim since 2006, as we have seen the number of sales in our market drop like a lead balloon.
Last year at this time, our market was down 67% from the peak in 2006, but we have since recovered somewhat and are “only” down 62% since the peak. This drop in unit sales (drop in demand) has resulted in an accumulation of supply. Even as local home builders sit idle in the housing market, supply levels continue to rise.
More Sellers Than Buyers
Our market continues to show signs that there will be more home sellers than home buyers for the conceivable future.
Sellers who have “waited” in order to hold on to value have instead lost even more to the market. The ones who sold in the past two years will look back one day and realize how lucky (smart) they were to sell when they could.
While it might appear to be “beating a dead horse,” we will continue to remind all that we must monitor the imbalance between supply and demand, and know that only population growth (or the destruction of built units) can get the market back to a level of equilibrium.