There were an astounding 8,000 closings in October 2009. That’s 50% above last year.
Didn’t I predict this buying spree six months ago? (Say “yes.”)
Expect even more closings in November, as everybody races for the tax credit.
Notice also that there is a greater trend toward short sales over foreclosures. The percent of foreclosures continues to drop both as Closed transactions (44%) and in the Pending category (35%). 25% of the active listings were short sales. 31% of the pending sales were short sales.
Unlike a few months ago when short sales were active, but did not close, we are averaging 20% closed. Further, short sales are staying on the market for less time. So, the banks are doing better at processing them.
The price numbers are continuing to ‘bump around’ with no consistent trend line. October’s Average Sales price was down about $4000 to $171,000 and the Median Sales price was down $2000 to $128,000. Both of these numbers are considerably above the yearly lows of $159,000 and $115,000 respectively, but the Average has been up and down for the past 4 months, with the Median down for the first time since April.
What does all of this mean?
It means that everybody is rushing so hard for the tax credit that they are buying whatever they can.
What does it mean if you want to buy?
It means that you should try to buy during the holidays when everybody else has either already captured the tax credit, or has given up. The holidays usually see less activity, so that might increase your power as a buyer.
Please give me a holler if I can help you with more market analysis.
Data compiled from report by my broker, Jim Sexton of John Hall and Associates.