Archives
September 2007
Friday, September 28, 2007 - Market Update |
Home Sale
Thud to 5-Year Low Point
NAR Report of Existing Home Sales No Surprise to
Anyone
Mortgage Rates Up For Third Straight Week
High
Appraisals Signal Change
Home
Sales in 'Free Fall'
Oh boy, I wish I had better news. The Fed and the media are having a field day with the housing market. Yesterday I heard a
report on the radio that the Fannie-Mae chief had announced that house prices would drop about 4% this year, even more next
year, and the drop would continue for years to come. If only the reporter would add, "Remember, these are national figures
and may not be accurate in your market". My fear (and it's echoed by many other people in the industry) is that the news
becomes a self-fulfilling prophecy. The more the media announces home-sales and home prices dropping, the more buyers sit on
the sidelines and wait for the prices to drop.
We had a slight surge in sales in August, but since the Labor Day weekend and back-to-school, the market has been deathly
still. Showings have dropped significantly. I'm still getting phone calls from the marketing I do, but it's mostly lenders,
calling to offer their services in case I talk to a real live buyer.
I've talked to buyers who were hot to buy a couple of months ago, who now say they think they should wait for prices to come
down some. I explain, in vain it seems, that prices are not in free-fall in our area. Foreclosures are not taking over our
market (Prince George's County seems to be weathering that storm very well, thankyou.) However, interest rates are going up
and waiting may place buyers in a position where they can't take advantage of price reductions.
The problem is that it is likely that prices will continue to drop. Partly because we're entering that time of year, and
partly because of the media. The following statistics tell the story:
In 2006, the months of June, July and August looked like this in Prince George's County:
June - 2,056 new listings; 1,219 contracts written, total dollar volume sold $427,262,179
July - 1,969 new listings; 1,184 contracts written, total dollar volume sold $363,640,435
Aug - 2,054 new listings; 1,171 contracts written, total dollar volume sold $424,592,204
In 2007, those same three months looked like this:
June - 2,014 new listings, 724 contracts written, total dollar volume sold $232,168,671
July - 1,963 new listings, 729 contracts written, total dollar volume sold $205,298,215
Aug - 1,926 new listings, 570 contracts written, total dollar volume sold $198,091,212
That's a 53.35% drop in dollar volume sold over the same month last year! It's even a pretty big drop from just
last month. As you can see, around the same number of homes are coming on the market each month as last year, but the number
of homes that are actually selling has dropped by a huge amount. This is because the buyers are staying away in droves.
And when I hear the news each day -- much as I don't like it -- it's hard to blame them.
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Saturday, September 22, 2007 - Newsworthy Articles |
The following are articles that I think are relevant in today's market. They say what I would say if I could say it
this well!
From 9/21/07, Realty Times: An article by Blanche
Evans on what to tell buyers who are sitting on the fence, waiting for prices to drop. Those who have spoken to me
about the current market have heard these same words -- we can't see into the future. Prices may drop, but interest rates
may go up, keeping that dream house out of reach. The mortgage news is all doom-and-gloom and it's having a greater effect
on the market than the actual events that are unfolding. The recent rate cuts by the Fed don't have much to do with
mortgage interest rates. They're two different animals. Anyway, as usual, she has said it way better and in more depth
than I've said it. So read on...
An article by Blanche Evans (Editor
of Realty Times, a well-respected newsletter for consumers and the industry alike), who speculates that our current
mortgage and housing problems can be traced back to the Tax Relief Act of 1997, which changed the way homeowners deal with
capital gains upon the sale of their homes.
A Washington Post article by Kenneth
R. Harney, detailing how the mortgage credit crunch is affecting all of us, not just those who have credit problems.
Today your credit score might be good enough to qualify for the best interest rates and terms. The criteria for those
interest rates is changing daily, lender by lender. And your credit may be affected by where you live, as well. Read on...
(c) Susan Pruden. |
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Saturday, September 22, 2007 - I Believe! I Believe! |
These "over-50" eyes don't multitask as well as they used to. I
don't seem to be able to juggle map book, MLS property printout,
and driving as well as I used to. Well, I used to call it
multitasking. Nowadays it's called "distracted driving".
Anyway, I broke down and got a GPS system. She talks to me,
tells me what turns to take and how far I have to drive before I
get to that turn. Very helpful, even if occasionally I confuse her
by taking detours that aren't in her plan. Like to the grocery
store. She politely tells me that she is "re-calculating route",
then tells me to make a "legal u-turn" as soon as is possible.
But the funniest part is her pronunciation of certain words.
"Maryland" seems to flummox her a bit, but it is recognizable as
"Maryland". But my absolute favorite is her pronunciation of
"Belleview Avenue" in Cheverly.
As I enter Cheverly, she crisply says "Turn right at Believe You
Avenue"! So for all my friends who have an address on Belleview
Avenue, just be warned, there is a new way to say it, so say it
proudly! "I live on Believe You Avenue in Cheverly!"
Thanks goodness for things to be amused by. 
(C) Susan Pruden. |
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Informal observations about Prince George's County Real Estate and happenings around our local area. I'm Susan Pruden, in Cheverly Maryland and I welcome your comments and participation.
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