RMLS Market Action Report – November 2009

The November 2009 RMLS Market Action stats came out this morning with more positive market news.

Closed sales were up 72.4% compared to November 2008 and pending sales rose 19.9%. New listings dropped 7%. 

The 72.4% same-month increase in closed sales is the largest percentage increase on record for the area. The previous high was 56.9% in December 1996.

So I’m not accused of being a “Polliana”, when you compare closed sales in November 2009 over October 2009 we saw a 10.7% decrease.  I’m sure everyone has their theories, personally, I think the uncertainty of the First Time Homebuyer tax credit played a significant role.  We see a decrease in average sales price from November 2008 to November 2009 by 11.4% and a decrease month-over-month by 3.6%.

Does this mean home values are still on the decline?  Yes, no, maybe-so.  Here’s something that has always remained true in the world of real estate, it’s all about location, location, location.  The market is and always has been completely dependant upon area, not just what city/town you live in but what neighborhood within that city/town and where within that neighborhood (are you on a busy street or does your home have a view of downtown?).  The average sales price is down year-over-year because there are incentives for First Time Buyers which also cap the income for one to collect the tax credit.  There are still areas that are experiencing declines but ask yourself what was happening in those areas prior to 2006.

The market is the market – good, bad or indifferent.  The question is, do you want to be a home owner?  If you’re ultimate goal is to own a home, now is a great time to take that plunge.  Great rates and soft values in addition to tax incentives have created the perfect storm.  If you’re looking for a sign the market is turning, 72.4% increase in same-month closed sales is substantial.  If you continue to wait you just might miss the boat.

~Kori