Sales in September 2008 were up 2% from the year prior. The under $300K range gained some ground as inventory dropped to 9 months’ supply, and the $300K-500K range held steady at 12 months’ supply. The $500K-1 million category improved somewhat with higher absorption rates, reduced inventory and fewer days on the market. The $1-2 million range continues to crawl along with over four-and-a-half years of inventory. The $2 million plus range actually saw two sales this month. Pendings dropped slightly, normal at this time of year. Meanwhile, sales of properties under $200K continue to sell at more than double the number sold last year, at an average price of $158,267. Full report.
Data courtesy of NNRMLS, September 2008. Report includes Stick-Built Single Family, Condo/Townhomes, and Real Property Manufactured Housing in Reno-Sparks (Area 100).
billddrummer
Diane,
Thanks for the statistics (and for hosting the mixer last week).
This report is cautiously encouraging. I just hope that the credit crunch doesn’t shut off mortgage money for qualified buyers. Otherwise, these numbers will fall off a cliff. Again.
SmartMoney
Hmm,the stock market (S&P500) is currently trading at the same level as it was in 1998. Why can’t real-estate fall to 1998 prices? Of course, the stock market is much more volotile and averages 10% yearly returns historically versus real-esate at about 4-5%.
billlddrummer
To SmartMoney,
In truth, housing prices should be at pre-bubble levels plus inflation since then. Now I don’t know how that compares to 1998 prices, but it makes sense to me. Before Fannie/Freddie became eligible to participate in the subprime party, home price appreciation was equal to inflation. Starting in 1999, the GSEs began guaranteeing subprime mortgages, and the party was on!
Now we’re reaping(?) what we’ve sown. I’ve said before that prices need to fall to pre-bubble levels. Perhaps I was overly optimistic.
MKchick
wait a second… the $300-500k median went UP?
BanteringBear
SmartMoney posted:
“Hmm,the stock market (S&P500) is currently trading at the same level as it was in 1998. Why can’t real-estate fall to 1998 prices?”
My sentiments exactly, why not? Especially given stagnant to declining wages. Here’s an article which makes an argument that, historically, renting makes more financial sense than buying.