As you glance through these reports, you may draw your own conclusions. I will provide some of mine and also some comments.
The September 2010 residential market declined significantly from previous months as well as the same period in 2008 and 2009. The market had already been down from previous years, but the reduction of over 50% in units closed and dollar volume could be considered a surprising disappointment.
Inventories continue to rise as sales fall. Average and median prices are down slightly but have not moved to reflect the fall off in volume. A number we have begun to watch is a median list price vs. median sales price. (We will report and comment on this next month.) There appears to be a wide gap between these numbers. Observations and feedback from Realtors indicate that many sellers are trying to preserve value, while others have adjusted prices to try to meet the market. The challenge is that buyers seem to be trying to "time the bottom." Our experience is that sellers who are unrealistic in their expectations usually end up not selling or having to lower their price below the market, just to get interest in the property. Days on market are a good indicator of reluctant sellers. In some price ranges, average days on market is approaching two years or more.
Buyers who try to time the market often loose also. It is impossible to know when a market turns until after it has done so. Today we have many sellers willing to work with buyers. Just as important, we have very low interest rates in today's lending market. Even though the "Fed" is trying to hold rates down, it cannot hold mortgage rates down forever. Most observers believe when rates begin to rise, they may do so rapidly.
The conclusion is that now may be a great time to buy; low rates, lots of inventory, and willing sellers.
For more information, contact Lee Swearingen/President
lees@ronbrown.com
(361) 575-1446
Offices in Rockport, Ingleside, Victoria, Cuero and Wharton, Texas
To see the full reports, click on the link below.
http://www.rockporttexasrealestate.com/marketinformation.asp