March Showers did NOT bring April Sales!

Well, we HOPE that the recent downturn in demand is a result of the dismal weather in most of February and March. I, for one, believe it is a factor. Not the only factor but mostly the weather dampened sales. (Sorry for the pun... well not really!)

So, let's get to the numbers. From February through April in 2006 we averaged 7.38 New Listings per Day and 2.52 Sales per Day. For the same period in 2007 we averaged 6.36 Listings and 2.39 Sales. So, inventory isn't gaining and demand is nearly as strong as last year. Nearly. Given the fact that the demand was up 10% in early February this is a dissapointing turnaround. However, demand in late April was strong and our Pending index(number of Pending Contracts or the number of properties that go under contract per day) has risen from 3.8 to 4.37 in less than one week. This is what I see from day to day as I check the MLS several times a day. Also, I have been doing this for over 15 years and can sense the activity. While I still can't say that the demand is strong, it feels stronger and I anticipate a very good summer.

So, what happened? I have no idea. Well, that's not true, I have several ideas. Weather, Weather, Weather. We had an awful stretch of weather from February through March which results in less closings six weeks later. Also, I think the negative national news on real estate had a depressive effect in our area. I don't think our market is heading for major correction(20% reduction of value). There are just too many jobs in the area and virtually no land left to build upon. (Personally, I think this is a good thing as Aquidneck Island is becoming way too congested. Check out http://www.ailt.org/!)

So, no new supply of available land, demand is not great but steady. Overall, this is a normal market and well priced well appointed properties will always sell. If you are a buyer, good time to get in and if your a seller, good time to upgrade. BUT you should seek professional advice from a realtor and a financial planner. Please let me know your thoughts.