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(The following was a letter to the Editor published in the July 2, 2007 issue of the State Journal - Register)
Fortunately, the article in Tuesday’s marketplace section pertaining to the current national housing market bears little resemblance to the local housing market. In spite of this story’s sensational headline the current outlook for the local housing market is much more positive than what is portrayed in this story. The important thing to keep in mind is that all real estate is local.
Let’s examine a few facts. First, there is no home price recession, correction or implosion. In fact, we are seeing positive gains in the median home sales price. Specifically, the median sale price in May of this year for the Capital Area was $111,500 reflecting an increase of nearly five percent over last May. Through May of this year the median sale price of $99,000 reflects a three and one-half percent increase over the same period of time last year. Generally speaking, the overall backdrop of our local housing market has painted a picture of consistent price gains over the past ten years.
Let’s look at unit sales figures. Through May of this year there have been 1,606 existing single-family homes sold. This is a mere 10 sales shy of the number sold during the same period in 2005 which went on to produce the best year on record locally. Also, current sale pendings are up over six percent from last year at this time which bodes well for future sales.
We are in a buyers market now with interest rates inching up and inventory levels giving buyers a greater variety of homes. Currently, there are 1,836 homes for sale on the market locally. Although from a historical perspective this is a substantial amount of inventory this figure reflects a 4.9 a month supply at the May sales pace as compared to nationally where the supply is nearly double at 8.9 months of supply. As a result, our local inventory levels are much more manageable. Homes that are priced right will continue to sell. Aside from a moderate oversupply of homes we would categorize the current local housing market as healthy and look forward to a strong finish in 2007.
If you are considering buying or selling real estate we can’t emphasize enough the importance of working with a professional – someone who knows the local market.
Peter Steward, ABR, CRS, GRI, President
Dan Sale, RCE, CAE, Executive Vice President
Capital Area Association of REALTORS
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