January is over and done. We are already a full week into February. Of 2012. Is anyone else just flabbergasted that it’s 2012? I remember when that seemed so – far – in – the – future.
I’ve been hearing a bunch of rumbling in the real estate market. What I’ve been hearing is so normal for this time period of the year. I hear this every year, around this time.
What do I hear? “Buyers are coming out of the wood work!” … “I’m busy!” … “The market is improving” … etc. etc. etc.
For the most part, while I will listen to my colleagues talk about this, I take it all with a grain of salt. Frankly, “busy-ness” doesn’t matter – at – all. Busy-ness is just busy-ness.
I also take it with a grain of salt because frankly, if someone doesn’t actually track what’s going on, all they have is perception. There is no way to make good decisions and take action on “perception.
What matters is watching true numbers. Watching stats. Tracking what’s going on. Here’s what’s going on:
#1 Solds are up. 6.5% more properties sold in January 2012 vs. January 2011. This is a good thing.
#2 Pendings are up. A lot. 33.3% more properties had accepted offers on them in January 2012 vs. January 2011. That’s a BIG jump.
#3 Active listings are down. This is a good thing. It means a more balanced market. More buyers, fewer sellers. Let’s balance out this ‘buyers’ market.
#4 New listings are down. Fewer sellers are putting their homes on the market so far this year. Yet another good thing. A balancing act for the health of the real estate market.
#5 Absorption rate is dropping. VERY nice. From a peak of 20 months in July 2011 to a low of 13 months January 2012. This is good. A health, balance market will have an absorption rate of 5-7 months.
#6 Sold to List ratio is low. This is not a good thing. It means that sellers are still over pricing their homes. By an average of 11%.
#7 Days on market is high. This is not good either. It’s running about 130 days from the day you put your home on the market until the day it changes hands (closes). That means, if your home is priced right, you would have an offer you accept about 80-100 days after it goes on the market. That’s too long.
What does all of this mean? It means that if you own a home and want to make your next move in this crazy real estate market – CALL US. Just make your move. We’ll show you how you can take advantage of all of this.
Call Chuck 208-819-2964
Chuck & Christina Ethridge