Click below to access the current report and chart.
IT FEELS ABOUT THE SAME…
While the number of homes sold May of 2011 has dropped by 33% from the same month last year, so has the inventory. Thus, in spite of lower inventory, we are not seeing it push up prices. They seem to be staying about the same. This could be it. This could be the flat bottom of the market. Of course, we won’t know that for awhile. In fact, with the tax credit boosting sales this time last year and pushing most of the sales for the year into the first two quarters, it is very hard to compare this year to last. We won’t really know how it all turns out until the end of the year.
One heartening part of the market is the over one million segment. One home sold this month and 3 more are under contract in that range. The number of homes listed in that segment has shrunk to only eleven.
Low interest rates tend to stimulate high end buyers. When you are borrowing that kind of money, a small change in rate can make a big difference in payments. We are finally seeing a willingness from lenders to lend in that jumbo market also.
Rates have recently dropped. Last week, the conforming rate for loans under $417,000 was 4.375%.
