There is good news, and there is not-so-good news. Trends for December, 2010 show Pending Sales increased for the month as they did in eight of the past 12 months. This is good news indeed, as it shows buyers are in the market buying homes. We expected this last spring in response to the Homebuyers’ Tax Credits. But after three months of decline this fall, seeing Pending Sales increasing, especially in December when there is generally slower activity in the market, is great good news.
The number of new listings has declined every month since March. This is more good news because declining inventory points toward a stabilizing market. We aren’t there yet, but we are moving in that direction. For the seventh straight month, Sales Price as a percentage of the Original List Price declined. Sellers are still overpricing their homes and are dropping their prices to secure a sale.
The Housing Affordability Index measures the ability of a family with median income to afford monthly mortgage payments on a median priced home. This number has shown upward movement every month in 2010. This is a positive sign for our market. More buyers can afford to be buying.
The not-so-good-news is the continuing decline in the Median Price of homes. Comparing the three-month period ending December 31 for 2010 with the same period for 2009, the median price for Jackson County was dropped from $178,000 to $158,000, a decline of -11.2%. Sales from foreclosed properties and short sales account for just over 53% of all sales. This accounts for the continuing downward prices for property, and this is not likely to end any time soon.
Mortgage Interest rates have begun creeping up, but they still remain at historic lows. A buyer today will realize greater savings from the lower mortgage interest rates than those who qualified for the Homebuyer Tax Credits this past spring. This makes now the best time to be buying. Higher interest rates in the future will wipe away any gains from lower prices.
If you know anybody who is sitting back waiting for lower prices, please refer them to me. I can show them the impact of higher rates and why now is perhaps the best time we will ever have to buy a home. I always appreciate your referrals. And, check out my website, www.JudyMillerRealEstate.com where you can see all currently active listings. Or give me a call at 541-941-6201. My goal is real estate transactions that are less stressful and more successful. I always appreciate your referrals.
