Showing Your Own Home

We've talked here before about the many reasons it's a good idea for a seller to leave the house when the house is shown to a potential buyer. But sometimes it's good to hear from a source other than myself!

So here are the words of an agent in Tampa, Florida who tells us why he loves it when sellers insist on helping to show their home!

Clevengers Corner Development

There have been several articles in the local press over the last week or two announcing that construction will begin at Clevenger's Corner next spring. Since April's numbers show approximately 23 months worth of inventory sitting here unsold in Culpeper County it's interesting timing! Overall, houses are not exactly selling like hotcakes in Jeffersonton, Virginia.

Now I will admit that what is selling is almost entirely new construction.  And it's selling because the builders are providing incredible deals. K Hovnanian, for example, has been advertising that if you buy a house from them now there are no payments until 2008. We're seeing $10,000 credits towards closing costs. $10,000 towards upgrades and sometimes more.

What the public doesn't see are the incentives to real estate agents. My inbox receives multiple e-mails daily offering me $5,000 or $10,000 bonuses, chances to win cars and trips, etc. All these are offered as incentives to bring my buyers to the builder.

Given all this as background, it seems like a poor time to begin this project. I'm not saying they won't do it. But I will say that spring of 2008 is quite a ways off yet. They can do some site work and watch the market. Don't be surprised to see them building very slowly or pushing back the date.

Of course, perhaps by next spring everything will have turned around and we'll be looking at a much more robust market. But....don't put any money on that scenario just yet! Let the big builders place those kind of bets!

Low Birth Rates

This weekend I was catching up on some reading and picked up an industry publication. It had an article by a broker in Illinois who made a case for a new root cause of the current housing market downturn. Since I hadn't heard this particular hypothesis I thought I'd share it with you!

Apparently in 1973 a whole lot of people didn't have babies! There were fewer babies born that year than any other year since World War II. That's 34 years ago. The average age of a first time home buyer today is 33. Voila! A year ago the housing market slowed as we hit a drought of first time home buyers.

The author makes the case that this pattern was also responsible for the last major downturn starting in 1989. Home sales declined for three consecutive years. As it happened at the time the average age of a first time home buyer was 25. And, as it happened, birth rates  declined beginning in 1964.

If that really is the major factor in today's slower market, the author says it will be four years before the cycle begins to move back up. That will be when we begin to see the "echo boomers" look to buy their first homes.

There's enough data here to intrigue me. And I'll be looking at demographics again over the next few weeks to see what other support I see for her theory.

In all honesty, though, I certainly hope she's wrong!

So, has anyone else heard this theory? Have any major economists bought into this? Obviously if it is true a lot of us will need to rethink a lot of our assumptions!

A Black Kitchen

There was an article in this week's Fauquier Times Democrat giving sellers advice on getting their homes ready to sell. There wasn't much actual news there so I won't spend a lot of space here reviewing the basic common sense ideas.

But there was a mention of how homes don't have to all be painted white these days and of how quickly a condo with a kitchen painted black had sold. This definitely deserves at least a comment!

Do NOT go out and paint your kitchen black! There are very, very few kitchens that would look good painted black. There are infinitessimal number of buyers who would actually want a black kitchen! I don't believe the agent interviewed for the article meant to advise people that painting their kitchens black. But just in case any of you thought it was a good idea after reading that article....STOP!

Yes, there's a greater tolerance for a wider range of paint choices these days. However, neutral is never a bad choice. Think twice about any really strong color choices!

Bright colors are great accents and your buyers won't be afraid that their decor won't match.

And, if you're in doubt as to whether or not to paint a room, ask your agent or hire a staging professional! And if either of them suggests painting your kitchen black, please get a second opinion!

Lowball Offers

We're seeing almost nothing but low ball offers right now. And, unfortunately, that seems to be the case even when the house is clearly already priced very aggressively. In the most recent case the agent agreed that the price was competitive but said his clients were unable to afford any more. I guess you never know until you try!

But here's the dilemna. Prices need to fall. If all the sellers are keeping their prices artifically high because they know they'll get lowballed. And if buyers are not looking at the houses because they believe the pricing is still too unreasonable we're kind of at a stalemate!

Somebody has to blink first!

So, if you're a seller give me some feedback. Are you pricing your house higher to factor in the almost certainty that you'll get a lowball offer? If you're a buyer, if you saw a house that you loved and the comparables clearly showed that the pricing was reasonable, would you still lowball?

Agents, how are you advising your sellers when setting prices and your buyers when making offers?

Piedmont Alternative Energy Expo

Regular readers of this space will know that I have an interest in green building and alternative energy solutions. If you're passionate about the subject or just a little curious, there's a great opportunity this next Saturday in Warrenton.

This is the second year for this event and I'm really excited! It's a wonderful opportunity to have this kind of information this close! Please stop by if you have a chance!

Saturday, June 2
9 a.m.–4:30 p.m

Fauquier County Fairgrounds
6209 Old Auburn Rd, Warrenton, VA 20187-4353

Admission: $5 for adults
Free for children and students

The region's only one-stop shopping opportunity for consumer-friendly alternatives to fossil-fuel energy returns for a second year.

 
NEW for 2007 is an added emphasis on green building, energy conservation, and sustainability.

 
WHAT'S NEW ? WHAT'S HOT ? WHAT'S COOL? WHAT WORKS?

Featured technologies for the 2007 Piedmont Alternative Energy Expo include solar, wind, and biofuels solutions, plus energy-efficient heating and cooling options—such as geothermal systems, high velocity duct systems, tankless water heaters, radiant systems, and alternative fuel boilers.

 
New exhibitors include ECO Solutions, LLC (water and air purification systems) , Green Man Forest Management (conservation-minded tools for responsible forest management), MoreSun Custom Woodworking, Inc. (timber frames, furniture, cabinetry and timber frame design using environmentally-friendly materials), RASP Technologies (alternative fuels), Blue Ridge Yurts (alternative buildings), and COTEFCO Corporation (energy efficiency consulting and products).

 
Lining up to return for a second year are… Appleton Campbell of Warrenton (energy-efficient heating and cooling systems), Oesch Environmental Design (solar and zero energy homes, green oak timber frame, straw bale construction, living earth roofs, and healthful environmental control systems), Piedmont Biofuels Cooperative of North Carolina (biofuels cooperative), Recovered Energy Resources (small-scale power plants fueled through biomass, animal manure, wood wastes, and trash), TerraBuilt (subsoil brick manufacturing and construction system), and Solar Connexion (solar design and installation services), among others.

 
TALK TO THE EXPERTS

Among the most popular Expo offerings are the chance to talk through individual applications with a wide range of experts and a variety of hands-on educational opportunities. A number of not-for-profits will also be on hand to provide information on energy use strategies.

 
PRESENTED BY RLEP AND THE RIPTIDE FUND

The 2007 Piedmont Alternative Energy Expo is presented by the Rappahannock League for Environmental Protection (RLEP) and the Riptide Fund. RLEP is a 35-year old membership organization dedicated to preserving the natural resources and rural character of Rappahannock County, Virginia.

 For more information, visit www.RLEP.org.

Foreclosures

I spent most of the day today learning as much as possible about foreclosures. Unfortunately, it's become clear that we're going to continue to see a lot of activity in this area. While I have a basic level of knowledge on the subject, I obviously will need more indepth knowledge going forward.

The class was taught by Phil Drew at Carteret Mortgage and it was excellent! Not everyone who knows their subject matter is able to convey it effectively. But Phil is clearly a gifted teacher.

What I really appreciated today was the detailed information on how to help your clients avoid foreclosure in the first place. A great deal of the class was spent on this. And while there are lots of details and an involved process, the most important thing to know there is to start as soon as there's even a hint of a problem. Early intervention clearly makes a big difference here.

From what I've seen most consumers who end up with a problem know woefully little about any of this. And, too often, the real estate agents they could potentially turn to don't know much more! Perhaps there's been no training in this because the market was so hot for so long everyone forgot what can happen. But I'd like to see an effort to make some kind of training on this subject part of the curriculum for every real estate agent. And I'd like to see it early in their careers.

Now is the time to work on this. Right now I know my peers agree with how much we all need this information and how much earlier we wish it had been available.  But the urgency will fade quickly when the market changes again.

In the meantime, I'm now in a much better to help clients who are worried about the possibilities of foreclosure. I have a better grasp of what negotiating strategies are effective with lenders, how to better protect my clients credit rating as well as their financial position after the house is sold or foreclosed. I'll never feel good about having to use this information. But I'm very grateful that I'll be better help to my clients when they need it!

Optimism

I am seeing small signs of life in the local housing market. Very small, I should add before any unwarranted euphoria breaks out!

But the truth is it's made me feel a little optimistic the last few days. In the interests of full disclosure you should know that I tend towards wild optimism in any and all situations! I don't see the glass as half full, I see it as almost overflowing! So, take this with a little grain of salt.

There has been at least one showing on each of my listings in the last week. That hasn't happened in ages! Now it's generally been only one per listing. And there haven't been any offers (yet!) as a result. But I did get a call from one of the agents saying his clients have narrowed their search and two out of three of the listings they're serious about are mine! So there seems to be some likelihood that at least one of my sellers will have the potential for good news soon!

And, I've been asking around and there seems to be some pick up in activity around the area. Again, we're not talking huge numbers, just signs of life that are at least a little encouraging!

I'll be doing what I can to fan the flames of this little ember of interest! There are some amazing deals out there and there are definitely people who need to buy something. Here's hoping a gradual turn around may have started!

Until we have firm data to back up this anecdotal evidence, I'll be working to keep my wild optimism in check! After all, if I tell you everything looks wonderful all the time, will I have any credibility left when the market actually turns?!

Traffic Down

Not too long ago I said I was frustrated with my ability to get any statistics about how many showings were taking place overall. There's good news (sort of) on that front today.

First of all, I've got the stats from the National Association of Home Builders (NAHB) showing traffic in new homes. Now that I know where to find this information I'll be adding it to the list of numbers I watch. Again, the frustration is that it's a national number and not local. But it does add a little more information to the overall housing picture.

I said it was "sort of" good news because if you look at that green line which represents traffic the trend is definitely headed in the wrong direction. And, even though this is a national snapshot, the anecdotal evidence from my own listings and conversations with other agents would lead me to believe that this is a pretty accurate picture of what's happening in our market as well.

The other good news on this is that the National Association of REALTORS announced at the mid-year conference this week that they're working on finding a way to track showings of existing homes. And, once they have the data we should be able to break it down into more localized pieces for better analysis.

So watch this space for more developments on this front.

Meanwhile, if you're a seller the very small amount of good news here is that it's not just your home that doesn't have any one looking at it!

Learning More

I'm at the mid-year convention for the National Association of REALTORS this week. So, if you've wondered about the lack of blog posts, that's why!

As I've mentioned before I always learn new things that benefit my business, my clients and at this week's conference in particular, my local REALTOR association. And that has the potential to make my peers better at what they do as well, which will mean that they reflect better on this profession.

It's also a chance to take the pulse of what's going on in the housing market around the state and around the country. It's a good chance to test my assumptions about the current market conditions against what other people are seeing and reading and experiencing. The information I get from other REALTORS will inform the decisions I make in my business, the counsel I give my clients and also what you see here on the blog.

One of the things that saddens me is the low representation of agents from our area. This conference is in DC. There is no registration fee. There are so many learning opportunities I could never get to them all. And both wireless connectivity and business centers are available to help you stay connected with your business. And, yet, I know of only one other agent here from my association. (Kudos to Karen Ingram!) Where are they all and why are none of them here? How hard is it to come in to DC for a day (or heck, even part of a day) from Warrenton or Culpeper? I'm always disappointed by the turn out here and that remain true this year.

That's all from DC for now. You'll be seeing posts over the next week or two about some of the topics we covered here and some of the new developments and issues I got the chance to discuss.

If you're an agent and you're here, I'd love to hear about what you loved (or didn't) about this conference!

What Will It Take?

Tonight a client asked me what I thought it would take to get the market moving again in this area. Here is my list of what it will take to change current market conditions.

1. Lower gas prices

Gas prices are clearly playing a role. They played a dramatic role in slowing the market, initially and they're still a drag. The vast majority of people who are moving into this area are commuting into Northern VA and DC. If gas prices suddenly dropped by, say, 25 cents, I'd be willing to bet you'd see a jump in activity almost immediately! Unfortunately, I have to say I don't see that happening any time soon.

2. Lower interest rates

While interest rates are already historically low, an additional drop would likely move some fence sitters to jump in now. If enough of them jump you get a lot of other buyers who were waiting for a sign that it's the right time. I don't see any interest rate cuts in our future, but I'd bet on this before I'd bet on lower gas prices!

3. Large reduction in inventory

I believe this one will occur, it just won't happen overnight. Over the course of the next six months, you'll see inventory fall. The faster it falls, the better for the overall market. But there are still way too many people with houses for sale who don't really need to sell now. If you've got no reason to sell this year rather than next...wait!

4. Large price drop

If sellers drop their prices enough, buyers will start to jump on the bargains. Right now we've got a standoff going on. Buyers still think prices are too high and sellers have dug in their heels and declared their not going any lower. In this kind of standoff, in my opinion, sellers always ultimately lose. That may not be true on an individual basis, but if you look at the larger market over time, it's true. Generally, sellers need to sell more than buyers need to buy.

5. A huge influx of new buyers

I don't know where they might be hiding, but this would definitely jump start the market. If you saw a major employer announce 100 new, high paying jobs locally, I believe it would have a pretty quick influence on the local real estate market.

I've given you some of my impressions of how likely I think these things are. What do you think? What other factors do you see that could change the market that I've missed?

Changing Housing Requirements

There was an article in the Wall Street Journal this last week talking about a new kind of housing development targeted at young singles. They are generally condos in urban environments with small living spaces and a larger than usual amount of common space. The common space features ammenities and activities designed to attract the residents to mingle.

Apparently some of these developments have been discovered by baby boomers and have become quite a draw for that demographic as well. The article's focus is on the clash between the two generations in these buildings. I think that's less interesting than the clearly underserved need for this kind of housing for baby boomers.

Again and again I'm hearing the desire to downsize. I hear it from baby boomers, from Gen Xers. It's amazing the consistency with which I'm hearing this message. But I think a lot of what they would like to downsize to doesn't exist. That's particularly true with the baby boomers with empty nests. They want smaller, one-level living within walking distance of public transportation and basic shopping. They want a community feeling, but not necessarily the pre-planned, gated, far-from-everything communities we typically see.

To bring this down to a local level, where would you find that kind of housing in this area? I'm really not seeing it.

The Gen-Xers often have young famlies and yet would still prefer smaller spaces. But they don't want to sacrifice luxury or convenience to have it. They want a well-built, nicely-appointed small house. Again, community is important to them. And they don't want to spend huge chunks of their lives commuting!

These are of course, generalizations. There are and always will be individuals and families with much different idea of their ideal house. Some will continue to look for the McMansions. Some will want the huge gated communities far out in the suburbs.

But I think there's an underserved need here and the article in the WSJ just reinforced what I'd already come to believe.

Any of you seeing (or feeling) the same things?

April Market Numbers

The April numbers are out and they're not pretty! Here's a snap shot for the local five county area.

APRIL MARKET STATISTICS

COUNTY	# ACTIVE	NEW LISTINGS	NEW CONTRACTS	SOLD
Culpeper	740	211	53	32
Fauquier	804	217	66	68
Prince William	5073	1668	471	427
Rappahannock	81	22	3	3
Warren	613	159	52	34

These numbers by themselves don't reveal the entire story. The really bad news here is that inventory jumped substantially, across the board. In every jurisdiction we're very near our all time high for inventory. New contracts and solds revealed very little improvement. In fact, in Culpeper County solds dropped pretty dramatically. And year over year numbers look pretty dismal.

Sorry sellers, but there is absolutely no good news to be found here. I'll say it again. (And I know I sound like a broken record!) There is no way to change this market without substantial price drops from sellers! Two other possibilities for salvation exist, but they seem like a long shot to me.

One is that over half of current inventory gets taken off the market. Given that the trend is in entirely the opposite direction I wouldn't count on that. And, there are truly some people who must sell. I think at one time we had enough sellers who just hoped to sell that they could have all taken their homes off the market and it would have made a difference. Now I don't believe that's the case.

The other possibility is that hoards of buyers come out of the woodwork, ready to buy. While I do think there's some pent up demand out there. And there are some smart buyers who are aggressively negotiating good deals ahead of the pack. But the vast majority of buyers will wait until everyone else jumps. It appears human nature is to follow the herd!

Culpeper still looks worse than the other counties and I still believe it's because of the rate of appreciation there as well as the impact of gas prices. Most of the peope who bought homes there were commuters into Northern VA and DC. The trade off of longer commute for more house is looking less attractive now!

If you'd like to look at the big picture you can go back to my earlier blogs on market statistics over the last year by county. They can be found under the category Local Market Conditions.

I'm interested to hear your thoughts as buyers, sellers and real estate agents about what you're seeing in the market. Do these statistics match up with your experiences?

Making Assumptions

I was the listing agent for a home that sold about a year and a half ago. Generally after the sale of a home I try to stay in touch with both the buyer and the seller. Most agents don't stay in touch with their clients and most people appreciate the effort to stay connected. Plus, questions come up and it's nice to have that additional neighborhood resource!

On this particular sale, however, I never made any attempt to contact the buyers after the sale. That's because the agent for the buyers led me to believe that they actively disliked me! The transaction had gotten fairly stressful at the end. And, I was definitely angry at the way things progressed. It can be difficult at times to determine whether it's the other agent who's making things complicated or whether the client is perhaps being unreasonable. In fact, this agent was so perturbed that she called my broker to complain. Fortunately, my broker, knowing me and knowing the details on the transaction, knew that the accusations were baseless and let it go.

But since I'd been told that these buyers actively disliked me there seemed no point in trying to establish a relationship!

I got a call from those buyers this week about potentially selling their home. Strangely enough, the agent who sold them the home is not getting a call.

My point here today is that you should never make assumptions. I should have attempted to get in touch. I shouldn't have assumed that what someone said to me in the heat of the moment was, in fact, gospel!

And, real estate agents should not let their relationships become overly adversarial. Generally speaking once there's a contract in place, both parties have the same desire, to execute that contract! There's no reason for real estate agents to let emotions get in the way of professionalism. And, yes, I've been guilty of that once or twice myself! Sometimes I'm preaching to myself!

I don't know yet whether I'll be marketing this house for the owners. But I know there's already a happy ending in my eyes. I've gotten to know some very nice people! And that almost didn't happen!

Some Won't Sell

I was talking with a friend in the real estate business and she said she's telling her clients that many of the houses currently on the market will not sell, period. I was taken aback by this. Not because she said something inaccurate. In fact, she's certainly correct. I just hadn't thought to put it as starkly as she did.

We're in a market where it will not be uncommon to see listings that have been for sale for a couple of years. I've already seen a few. There will be more coming.

So, given this, what changes about how I do business? What changes about the behavior of buyers and sellers?

First of all, if you're a seller, don't throw yourself off the roof yet! In any kind of market, some houses will sell. The trick is to make sure it's yours. That means aggressive pricing and your home is in tip top shape. Don't be afraid to consult a staging professional. (It's a service I frequently offer to my clients.) If you're not willing to inconvenience your family in order to make your home look really great, reconsider how badly you want to sell!

If you think that sounds harsh, I'll tell you that I already know I'm the kind of person who should only sell my own home in a really hot seller's market! I know I don't want to be that inconvenienced for that long! You need to know your own motivation and tolerance for pain!

For myself, it means once again reexamining how I explain current market realities to my clients. It means always making sure I've got the latest market data so that the information I share is not solely based on my opinion. And it means being able to deliver hard news without seeming alarmist! "Yes, it's a tough market! Yes, we can still sell your home if you really, truly want to!"

For buyers, all I can say is, what fun?! I don't know how long this will last, but life is good in your shoes right now!

My friend is right. A lot of homes currently for sale will not sell and eventually will be taken off the market. Clearly in those instances the owners really didn't NEED to sell right now. We're all relearning the difference between wanting to sell your home and needing to sell your home!

Family Compound

I recently read that there's a new trend in real estate. Apparently the newest thing is family vacation compounds in sunbelt areas. A family typically buys a large parcel of land and then has one large main house built that's large enough to accomodate events and meals for the entire extended family. Then smaller homes are built around this main house with outdoor common areas left open for recreation. This is a very interesting concept but I'm having a hard time believing it's going to really take off.

First of all, I don't know about your extended family, but for mine, organizing one large family vacation is challenging enough. (I was in charge of one for our family just last year!) Coordinating schedules, getting everyone to agree on what they want, where they want to go and how much they want to pay is a pretty complicated undertaking. Now imagine you have to get everyone to agree on all these things for a permanent compound!

Resale potential is a bit tricky. These are apparently generally designed one at a time for each family. That makes this a very unique property with a very limited pool of potential buyers. And, what if, over time, some families want to sell their individual cottages/homes? How does that get handled?

Then there are the financial questions, both initial and ongoing. How do you divide up the costs? Again in my family there are fairly wide disparities in income. And, once families buy in, how do you share taxes, insurance and maintenance costs? What if someone falls on hard times? It seems like there are a plethora of ways for this to create hard feelings!

Oh, and is everyone going to want to spend their vacation in the same spot (with their relatives) every year? Given the costs involved will they be able to afford not to?

On the other hand, I live far from my siblings and parents and miss them very much. It would be great to be able to count on time together with them on a regular basis in a relaxed setting. It's an emotionally satisfying idea on paper. I'm just not sure we could pull it off and all remain on good terms!

What do you think?

DPOR

The Virginia Department of Professional and Occupational Regulation exists to protect you, the consumer. If you haven't checked out their web site, it's definitely worth a look.

This web site has news about changing real estate laws. It has a place for you to check out real estate agents and find out whether there have been any disciplinary actions against them. And while I'm talking about real estate agents here, DPOR actually regulates 30 occupations and professions.

There are two upcoming changes to real estate laws that will effect you in the next 12 months. And, as each one gets closer I'll have a blog that provides more information on what you need to know. But the DPOR site is a good place to get started with what's coming up.

And, if you're getting work done on your house, you might want to check out your contractor here before you hire him or her! First you want to know if they're actually licensed! Then you want to know if there have been serious problems with them in the past.

It always pays to do your homework! And DPOR provides a good web site for starting that process.

Buyer's Guarantee

BE NOT AFRAID!

Since fear seems to be the driving force behind the lack of buyers in our market right now, I'm going to do what I can to change that!

Starting today I am offering a guarantee to any buyer who buys any property with me as their agent, or to any buyer who buys any of my listings (regardless of their agent). I guarantee that if you own the property at least one year, and list with me when you're ready to sell, that you will get at least what you paid for the property or I will waive my commission and sell the house for free.

Let's face it, no one can guarantee what the future will bring! But I believe in the future potential of this market and am willing to demonstrate that with my actions!

This benefits my sellers as it makes their homes more attractive and a less risky buy than the other one down the street. It benefits my buyers because they'll sleep better at night knowing that if they transferred in a year and the market hasn't improved as much as we all thought, they've still got some protection.

I hope this is a win/win for everyone! Let me know your thoughts!

The Statistic I Can't Get!

If you've been paying any attention here at all, you know I like numbers and analysis when trying to get a real picture of what's going on in the market. Know those numbers and add some intuition and gut instincts and you've got a good basis for understanding market trends and directions.

But the one number I can't get and consistently long for is the number of showings in the last week/month/year. Right now all I've got is anecdotal evidence, polling my fellow agents.

What I'm really after is a number that gives me an earlier picture of market direction. Mortgage applications does that to some extent, but those numbers are typically at a national level and don't give us a true local picture.

When showings increase consistently over time, odds are we're seeing a corner being turned. Or maybe we're just seeing a short term improvement. But if you're a seller, you'll take all the good news you can get right now!

What are the rest of you, professionals and consumers doing to get a feel for this piece of the overall housing market picture?

Lake Whippoorwill Subdivision

Lake Whippoorwill subdivision is located in Fauquier county on the DC side of Warrenton. There are approximately 130 homes here, almost entirely made up of colonials on large lots.

There are currently six homes for sale here. The prices range from $499,900 to $599,900. Actually, four of the six are listed for $599,900! The most recent listing has been for sale for 12 days. The longest any of these have been on the market is 323 days.

Eight homes have sold here in the last year. For those of you who have been following the subdivision market reports here, you'll notice this makes this the best we've looked at in terms of inventory. There is about 9 months worth of inventory for sale here. That's a vast improvement over any of the northern Culpeper county subdivisions we've looked at. One caveat, however. There are an additional 5 homes that have been for sale over this one year period and were withdrawn from the market and have never sold. Assuming the owners still wish to sell these homes this pushes the inventory to over a year's supply and more in line with the overall numbers for Fauquier county as a whole.

The longest it's taken anything to sell is 405 days. The shortest amount of time it's taken any home to sell is 11 days. The highest net sales price in the last year was $689,999. The lowest net sales price was $480,000. Homes have sold for an average of 96% of the final list price. There is clear evidence of the falling area prices here as the last two homes that have sold were the two that sold for the lowest prices.

Based on what the two most recent sales were here (net of $480,000 and $536,625) it is likely that further price reductions will be necessary to move the inventory here.

Again, feel free to share your comments, insights and perceptions if for no other reason than it will help my blogging class!

Thanks!