Alleluia! Local Real Estate Has Turned A Corner
Available home inventory has been decreasing (in trend), month over month, for the last 12 months. Last year, at this time, both Culpeper and Fauquier counties had close to 750 homes (in each county) available for sale. Today’s totals range from 623 – 669, a decrease of 11% - 17%. Analysis of the data further reveals that in August of 2007 Fauquier had a 20-month inventory of available homes; inventory in August 2008 shows a 12-month inventory of homes. Culpeper County presented a 22-month supply of homes to the market in August 2007. August 2008 shows a different view with inventory levels down to a 9-month supply. That is great news!
Homeowner Sold versus Bank Sold
Understanding the real estate market is difficult for everyone. Digesting data provides heartburn and leadership. One item of interest demonstrates that banks understand and accept the market as it is, not as they would like it to be. Banks understand the first rule of economics, supply must match demand to have a balanced market. When the demand is low, if you lower the price, the demand will rise to meet the level of supply. At that time price increases will take place. Banks have lowered their pricing and captured 37 ½ % - 67% of the homes currently under-contract. Over the last 50 days their ownership of the “sold market” indicates that they control between 45% - 60% of all homes sold in Culpeper and Fauquier Counties. Again, we celebrate the “bank inventory” of homes is lessening.
The number of homes sold over the last 50 days is up 20% with monthly sales, in general, exceeding the month-to-month rate during the first 7 months of the year.
Pricing data of sold homes indicate lower sales prices in both counties. Look at the data:
We are in a recovery. Let us truly celebrate.