You may have noticed that the world of business is much like the weather – if you don’t like it, wait a little and it will change. Real estate is no different. If you look at the news you will read that the market is falling off a cliff, then the next day someone, somewhere comes out with some numbers and the market doesn’t look all that bad.
The problem is that real estate is a local matter. Many times the numbers that are reported on the news are for the nation as a whole, or more likely for an area that has doom and gloom results, yet clearly real estate is influenced by local matters such as plant closings or even openings, taxes, schools, environmental issues and even the weather. After a hurricane tears through a community it is probably hard to sell real estate, yet let a snow storm hit in the north a few months later and many of those folks would probably be glad to move into a hurricane area.
Recently the Williamson County (Tennessee) Association of REALTORS, of which I am a member, issued their monthly statistics for July, 2011. With all the negative news swirling around, it was good to see that residential closings increased 6.3% from the previous month and 26.2% from July 2010. Some how that kind of information just does not make the evening news – it doesn’t sell news!!
The other good news is that the inventory level decreased which means there are fewer houses on the market than the previous July. In addition, the number of days on the market also decreased. This is good news for the real estate market, at least in Williamson County, Tennessee.
Unfortunately, these numbers were driven by a 9.9% decrease in the median price for July. However, the median price for July, 2011 is up about 3% compared to July, 2009. This underscores the point I made in another posting on the importance of pricing your home right.
I still believe that home ownership is an extremely important part of our lives and that anyone who wants to own a home, should not let the market deter them. In fact, with home prices starting to creep back up, this might be a great time to get into a home of your dreams.
I would love to hear from you.