Supply and demand is a pretty basic economic principle...if you look at the number of homes on the market versus the number of homes pending sale, there is only a 2-month supply of homes on the market. Just to flash back...in September 2007, the supply of homes had reached / peaked 15 months. Please keep in mind that not all areas and neighborhoods are affected in the same way...if you would like me to email you statistical graphs for a specific zip code, feel free to email me at erin@erinattardi.com.
Some interesting market factiods? Slightly more than 66% of the homes that sold last month were Bank-Owned REO's. Approximately 95% of the homes sold last month were priced under $400,000. The median price last month was at a level last recorded in February 2001. March 2009 is the 12 straight month that the sales volume was higher than the same month the previous year. Interest rates have been hovering around the 5% mark. There are new state and federal first time buyer tax credits available. In certain cases, a home's monthly mortgage payment is less than rent for a comparable property.
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1 comment:
Nice analysis. As you say, you can't beat basic supply and demand.
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