Well, having the best August in 4 years isn’t quite as exciting as having the best July in 7 years. Nevertheless, the trend is in the right direction. And, have you listened to or read any real estate news lately? Those stories have recently moved positive in nature and they are mentioning the worst of the worst: Phoenix, Las Vegas and Florida (sorry Ohio and Michigan, you aren’t included yet).
I was speaking with a couple of investor clients, they are even finding it harder and harder to buy properties that they fell like they can flip for a profit. Why? They say that there are so many more people in attendance at the Public Trustee auctions (apparently, Adams County is the worst). What is happening is that the less sophisticated investors are bidding up the prices of these foreclosed homes to the point that there isn’t enough wiggle room in case they run into a serious repair issue (interior inspections are not typically allowed before the auction). The risk is higher when the margins are thinner.
Get the Longmont Statistics here:
We have been running at 20+% fewer listing over the summer months. With August’s inventory at a -11.4% over last year, we are starting to see an overall trend of lower listings where we won’t see a big decline year over year, because this lower number is the new normal for listings. Did that come out right? I hope so.
The whole report shows positive information on monthly and yearly sales totals. Days on Market is steady and significantly lower than historical norms. Inventory continues to be an issue because it is been so low for so long. It ought to be interesting to see what happens to this over the winter months. And lastly, the average and median prices continue to fluctuate, but those numbers, by definition, don’t tell a good story. We need a new metric for the world to use that shows actual fluctuations…one that is easy to use and track. Send me your suggestions.
BTW – Predictor says 92 for September. I think we have a shot at it. It said 125 for August, but it just isn’t built to handle those huge swings.