One of the greatest benefits I have found for having a coach is perspective. As we move through life, it easy to focus on the negative news and lose sight of the big picture. Perspective can help bring things back to reality.
My coach at www.BuffiniandCompany.com assembled this information that I would like to share with you. Hopefully it will give you perspective too!
Essential Facts for Today’s Market
More than 1000 banks closed in 1930 – three years before the FDIC was created
- Only 14 U.S. banks have been taken over in 2008
There are 76 million households in the U.S. that own their home
- 24 million of these homes are free and clear
There are 52 million homes with mortgages
- 97.2% of these are not in foreclosure
- 93.8% of these homes are current on their payments
On a sobering note:
Over 20% of homeowners with a mortgage owe more than their home is worth
40% of all foreclosures are non-owner occupied
How did we get here?
|
Decade |
Homes Sold High |
Homes Sold Average |
|
1970’s |
3.9 million |
3 million |
|
1980’s |
4 million |
3.3 million |
|
1990’s |
4.9 million |
3.9 million |
|
2000’s |
7.1 million |
5.6 million |
Resale numbers – the above does not include new home sales.
Sources: Wall Street Journal, Moody’s Economy.com, RealtyTrac, NAR, Forbes
Watching the news or reading the papers you may be led to believe that the whole nation is in foreclosure, but it is actually a single digit percentage of the homes. Unfortunately bad news is what grabs the nation’s attention even when it does not represent the whole story!
Posted By:
Tony Meier
Eastside & Seattle Realtor
425-466-1000
EastsideHomesBlog.com
EastsideHomes.com
Seattle's Eastside Real Estate Resource
tony@eastsidehomes.com
Eastside & Seattle Market Absorption Rates
By: Tony Meier
Eastside & Seattle Realtor
This week we will be looking at the Condo market absorption rates for the Eastside over the last 7 weeks. When looking at these numbers, keep this in mind:
1. These are an average of the all price ranges in the area. Some price ranges are definitely moving faster than others! If you would like to know how things break down in a specific price range for an area, send me an email at tony@eastsidehomes.com
2. These numbers are a result of the sales activity over the last 7 weeks when comparing the number of active listing vs. the number of pending sales to determine what the market absorption rate is for a particular area.
3. When measuring the heat of the market, the following rules apply:
a. 12 weeks or less = Seller’s Market
b. 12-24 weeks = Balanced Market
c. 24 or more weeks = Buyer’s Market
Condo Only, NWMLS Area 500 (Bellevue, South of I-90) = 47.8 weeks of inventory
Condo Only, NWMLS Area 510 (Mercer Island) = 50.8 weeks of inventory
Condo Only, NWMLS Area 520 (Bellevue, West of 405) = 45.2 weeks of inventory
Condo Only, NWMLS Area 530 (Bellevue, East of 405) = 25.1 weeks of inventory
Condo Only, NWMLS Area 540 (East of Lake Sammamish) = 27.1 weeks of inventory
Condo Only, NWMLS Area 550 (Redmond/Carnation) = 32.2 weeks of inventory
Condo Only, NWMLS Area 560 (Kirkland/Bridle Trails) = 46.2 weeks of inventory
Condo Only, NWMLS Area 600 (Juanita/Woodinville) = 45.7 weeks of inventory
If you have any questions on this information, I welcome you to email me at tony@eastsidehomes.com
Posted By:
Tony Meier
Eastside & Seattle Realtor
425-466-1000
EastsideHomesBlog.com
EastsideHomes.com
Seattle's Eastside Real Estate Resource
tony@eastsidehomes.com
Are you unsure WITCH way to turn?
There Is No Need To Worry!
The Real Estate Market Does Not Have To Be A Scary Place!
With two decades of experience, I know how to navigate the changing market successfully and profitably for my clients! If I can help you get your home SOLD or assist with the purchase of a new home, give me a call at 425-466-1000
Happy Halloween from the Meier Family!
Posted By:
Tony Meier
Eastside & Seattle Realtor
EastsideHomesBlog.com
EastsideHomes.com
Seattle's Eastside Real Estate Resource
tony@eastsidehomes.com
Eastside & Seattle Market Absorption Rates
By: Tony Meier
Eastside & Seattle Realtor
This week we will be looking at the Residential market absorption rates for the Eastside over the last 7 weeks. When looking at these numbers, keep in this in mind:
1. These are an average of the all price ranges in the area. Some price ranges are definitely moving faster than others! If you would like to know how things break down in a specific price range for an area, send me an email at tony@eastsidehomes.com
2. These numbers are a result of the sales activity over the last 7 weeks when comparing the number of active listing vs. the number of pending sales to determine what the market absorption rate is for a particular area.
3. When measuring the heat of the market, the following rules apply:
a. 12 weeks or less = Seller’s Market
b. 12-24 weeks = Balanced Market
c. 24 or more weeks = Buyer’s Market
Residential Only, NWMLS Area 500 (Bellevue, South of I-90) = 44.3 weeks of inventory
Residential Only, NWMLS Area 510 (Mercer Island) = 71.8 weeks of inventory
Residential Only, NWMLS Area 520 (Bellevue, West of 405) = 68.2 weeks of inventory
Residential Only, NWMLS Area 530 (Bellevue, East of 405) = 27.6 weeks of inventory
Residential Only, NWMLS Area 540 (East of Lake Sammamish) = 35.7 weeks of inventory
Residential Only, NWMLS Area 550 (Redmond/Carnation) = 34.7 weeks of inventory
Residential Only, NWMLS Area 560 (Kirkland/Bridle Trails) = 60.1 weeks of inventory
Residential Only, NWMLS Area 600 (Juanita/Woodinville) = 39.9 weeks of inventory
If you have any questions on this information, I welcome you to email me at tony@eastsidehomes.com
Posted By:
Tony Meier
Eastside & Seattle Realtor
EastsideHomesBlog.com
EastsideHomes.com
Seattle's Eastside Real Estate Resource
tony@eastsidehomes.com
This is a complicated question. To discover the answer, we must know the forces that control our market. Real estate is a supply vs. demand business and is heavily related to the rate of absorption of the inventory.
Absorption Rates
If we have low inventory and high demand the absorption rate is high and we have a seller’s market. Conversely, if we have high inventory and low demand the absorption rate is low, we have a buyer’s market – which is where we are at today.
March of 2007 marked the last month that we had a strong sellers market. As we entered the second quarter of 2007, the pendulum started to swing. Inventory started to rise and sales began to fall off. If you look at the chart below, you will see the change.
All these numbers relate to the absorption of inventory. In the second quarter of 2007, the rate of absorption of inventory began to decline. See the chart below.
You will notice that the absorption of the inventory is at its lowest levels in a decade. The rate of absorption on this chart has been at 15% for the last 12 months. In fact, we have numbers that are far from average.
The average pace of the King County Market
In-spite of showing resistance to go below 15%, the current numbers are well below our averages for last 10 years. Here is what we normally expect:
9309 Active Listings per month
2939 Pending Sales per month
32% Absorption Rate
When you compare these numbers to our current market, there are many more sellers wanting to sell and fewer buyers wanting to purchase.
Are we still adding "Fuel to the Fire"?
New listing are the fuel on the fire. When looking at the question “ Have we reached the bottom of the absorption rate?” you need to analyze the state of our inventory. Is it getting better or worse?
This chart shows a steady decline in the number of new listings coming to market since March 2008. It also shows the total amount of available listings stabilizing with last years numbers. Finally, you will notice that pendings are beginning to stabilize versus 2007 and September we surpassed the number for 2007 by 4.18%.
So have we reached the bottom?
Looking at this data alone, I would think it is likely. However, as I write this… the stock market has been taking a tremendous beating for the last 3 weeks. Now the big question is… will the real estate market recover on its own or will it require the stock market to stabilize before housing will do so too. Only time will tell!
Certainly, savvy investors will see that this is an amazing time to invest in real estate, especially when compared to the recent performance of the stock market!
If you would like to know more about investing in real estate, feel free to contact me.
Posted By: Tony Meier
Eastside & Seattle Realtor
EastsideHomesBlog.com
EastsideHomes.com
Seattle's Eastside Real Estate Resource
tony@eastsidehomes.com
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved