STEVE'S MONTHLY MARKET UPDATE - JULY 1, 2008
YOUR GUESS IS AS GOOD AS MINE!
Summer's here with no housing recovery near and with still much too much fear. As oil prices soar and foreclosures roar, what do we really have in store?
Will our politicians step up to the plate without worrying about their own collection plates? Nah…special interest seems to be in charge of our fate.
On a serious note, serious sellers will have to price their homes correctly. Unless you are selling a very unique and desirable property, any other strategy will most likely result in a frustrating and extended period of time on the market. As I have been indicating, month after month, sellers who are not willing to price more aggressively than the competition, will probably not be taken too seriously by the current pool of potential buyers. We have seen so many well intended sellers initially overprice only to follow the market downward with any corrective changes. In the end, they end up with less than they could have gotten if they had just priced it right from the start.
We may be near or even at the bottom of this horrific market, however, one needs to remember that the market will tend to move in a "u"-shaped curve verses a "v"-shaped one. As soon as the market shows any signs of again moving upward, the pent-up supply of sellers will flood the market, quickly bringing any recovery to a halt.
My advice to buyers, focus on "location", as well as price. It will be the properties that boast strong locations that will hold up well even if the overall market slips further. The current extensive selection can enable buyers to find specific properties that really match their personal criteria. The passing of time will eventually make their investment a sound one. In the meantime, they can enjoy living in a most desirable home.
Currently the town of Alton has 134 active home listings, 7 of which currently have sales agreements and are awaiting closing. 6 homes sold in the month of June.
Price Range # of Homes Listed # of Pending Sales # of Closings
0 to <$200,000 35 1 1
$200,000 to $300,000 33 5 3
$300,000 to $400,000 20 1 0
$400,000 to $500,000 7 0 0
$500,000 to $1,000,000 23 0 1
$1,000,000 and up 16 0 1