Also, quarterly inventory reports
From Big House Data, LLC here are the latest market reports and analysis for Washtenaw County:
With an uncharacteristically mild December, showing activity appeared to pick up around Washtenaw County. While showings do not translate into an equal or even proportionate number of purchase agreements, they are a good indicator that the market still has a pulse.
That being said, December represents the last month of 2006. For the Washtenaw County housing market, this was not a bad year. Looking to be the fourth best real estate market this area has seen can be a bit of let down given the last few years’ near and record highs.
2006 will likely be seen as a transition or a readjustment year for the area’s housing market. Many sellers have been faced with the reality of buying in a hot market and trying to sell in a lukewarm market. As such, sellers that need to move are slashing their prices, taking the loss, or offering irresistible incentives to buyers. If the “price fishers” removed their properties from today’s market, we would be looking at a seller’s market right now, with modest increases in property value.
The good news? Homes are still selling. As highlighted in the November stats, it appears as though some kind of normalcy is coming into this market. 2007 will be a trying year for real estate in this area. Those foreclosures that the investors have been keen on buying for a steal will have a deleterious affect on appraisals done for 2007; and the foreclosure boom is not over! I expect to see continued price adjustment in 2007, but no bursting of the bubble. The slow leak that we have experienced in 2006 will continue for at least nine months of 2007.
To bolster that opinion, I point to the sales price differential and the drop in volume from 2005 to 2006. While volume was down over 14%, sales price was only down 3.3%. This indicates to me that the two segments of the market moving with any kind of speed is the first-time homebuyer range (up to $250k around here) and the high-end homes ($700k+). There was a great enough churn in the low end to bolster the volume, yet enough turn over in the high end to sustain the purchase price (average of nearly $256k) for Washtenaw County.
Anyone agree? Disagree? Why?