“Mixed up” in the sense that there are really good numbers coming in while also there has been a run-up in inventory of homes for sale. Nobody is able to forget the mortgage interest rates climbing if they are in the market to borrow. That has an effect on many buyers and their motivation. We wish for perfect clarity and get fuzzy images.
September and October are often the busiest months of the year for Santa Fe residential real estate, but a portion of the mood is fear because activity has been lacking a bit. Showings are an indication, as are written offers.
Sometimes the sellers hold tightly to a number and sometimes buyers think they can walk right into a great deal. But without a meeting of the minds, there can only be talk and paperwork flying around.
The good news feels good to report: August 2013 had the largest single month of residential unit sales since June of 2007. Think about that; six years and two months since we had a month like we just had. For the year, we are running about 7% above last year’s pace for unit sales. Last I heard, 7 is better than 5 or 6…steady but slow is still the norm.
On the scary side of the picture, we have witnessed that our inventory of homes for sale grew by over 500 from January thru August of this year. Spring and summer typically see an increase in inventory, but historically this was a big increase, about double. Even with the increase in sales numbers, our inventory of listed homes has climbed 39% since the first month of the year.
There is a strict definition for that and nobody wants to say it, or hear it said. We have made great strides since the bubble burst, but remain in a buyers market.
You might watch many of those listed homes come off the market thru the late fall and winter seasons by contract expiration and leasing efforts. By January, inventory will be lower, but will it be 500 homes lower?
In the meantime, we are getting our fourth straight day of slow steady drizzly rain around here. That is a rare occurrence and we are eternally grateful for it.