There have been some recent news articles about the nationwide housing market over the past few days. One talked about July being the lowest number of sales in many years and that the inventory was at its highest in a long time too. Another talked about a survey showing that foreclosures sold for 27% lower than comparable homes (this study was in Massachusetts). A third article I read blamed the slowness on the market on Buyers who were waiting for prices to drop more and Sellers thinking they could get more for their home and are pricing too high.
Nothing really surprising to me. I’ve already posted the July stats (scroll down to the bottom and click “older entries” to see statistics I posted towards the beginning of the month). We really didn’t see that much activity with the homeowner tax credit so the ending of that program didn’t really effect our area that much.
One thing wrong with the current media articles on median home prices is that they never break down the prices between foreclosures and non-foreclosures. With foreclosure rates nearing 50% of total sales in a given month in SLO County, not breaking down the median home prices to REOs, Short Sales, and non-distressed homes results in missing important data and I can’t see how anyone can comment on what’s going on in the market without seeing the breakdown and looking at trends.
I did see a prime example of overpricing lately though. A home in a neighborhood started out listed over $1 Million and was on the market for over 200 days. It finally ended up selling for a bit under $800K. A home a few doors down on the same street recently went on the market at $1.8 Million. It is a bigger house but a million dollar difference in a slow market with over 7 years of inventory of million plus homes??? I wonder if the Realtor is the one that suggested this price, thinking it will sell (and appraise) at that level.
I’ll be running the August stats early next week to see how all our local indicators are doing.