It really feels like we are making some progress in the market lately. During many years, we have already peaked by July 1st and have already started experiencing the summer stall. This year it has a different feel to it. Buyer’s are out in force and we are still selling at brisk pace. At the end of June 20% of the active listings were under contract. This is a good pace for this time of year. Last year at the end of June 14% of listings were under contract.
For the year, sales are still down 16% but we are making gains and eating into an early deficit caused by the tax credit of 2010. Last month we were 20% behind last year. I expect that we will make even better gains during July since last July was one of the worst summer closing months I can remember.
Here are the keys I see for the market going forward:
- No dramatic interest rate increases. I think everyone expects rates to gradually rise but too much at one time will shock the market. Buyers are still looking for deals.
- The economy seems to be moving in the right direction. We are getting many new residents to the area and the unemployment rates and vacancy rates are very low. This bodes well for the future. As long as we don’t have a huge change in status on a national level I expect to see continued improvement.
- Improvements in short sale processing and credit underwriting. I guess this is more of a wish than a prediction.
To view the latest statistics in graphic form view the slides below. View in full screen for best results.