Tuesday, August 24, 2010
Home Sales Slip Nationally in July 2010
Nothing burns me up more than misinformation. Unfortunately, our media have fallen into the bad habit of generalizing the entire nation's economy and housing market with just a few examples of desperate markets across the nation. Yesterday's Tennessean printed an AP article that cited that July's home sales were the worst in 15 years.
While this statistic can be very accurate, the Tennessean was remiss in reporting what the Middle Tennessee market has done and is doing. Laziness in fact-gathering perpetuates nothing less than accelerated and unnecessary fear among our citizens.
Here are the facts for Middle Tennessee:
1 - There are 99 different regions in the Middle Tennessee Multiple Listing Service. Statistics are for all of those areas combined.
2 - Average SALE PRICE for July 2009 was $199,534 for residential homes, selling at 95.09% of list price with an average of 107 days on the market.
3 - Average SALE PRICE for July 2010 was $213,641 for residential homes, selling at 94.91% of list price with an average of 95 days on the market.
4 - There was an increase of $14,107, an INCREASE of 7.1% in sale price.
5 - In both months, the sale price was about 95% of list price. That screams consistency in our market.
6 - Sales in July 2009 were 2640; in July 2010 they were 1962, a difference of 26%.
Is this cause for alarm considering the INCREASE in sales for the first five months of 2010? No. In ANY market, what goes up, MUST come down. First-time home buyers RUSHED to get their homes closed prior to the June 30 deadline. It makes sense that there would not be as much activity in the month immediately following that deadline.
Personally speaking, I have helped several first-time home buyers buy homes this year. In fact, the last three closings were first-time buyers. NONE of them qualified for the tax credit because they bought after the June deadline.
With the "facts" that the media uses to justify it's articles, it is easy to see why people are afraid of our economy, but there is no justifiable reason for this fear.
Is our market lower and slower than it was three years ago? Yes, it is. There's no denying that. But has it "tanked"? No, it hasn't. Yes, it's down some, which should have been expected. There is no reason why we should expect any market to stay high all the time.
With this being said, there is hope. Not only do we have a fairly stable market in Middle Tennessee, rates have NEVER been lower. At only 4.25%, this is a great time for people to buy homes. And it's also a great time for people to sell homes. What's stopping you?
Working with buyers and sellers in today's real estate market is what Jack Jernigan does best. He knows the market and expertly guides buyers and sellers through the buying or selling process. If you're looking for a competent and professional agent to help you with a real estate need, give Jack a call at 615-373-3513.