Wednesday, August 25, 2010

Go Away, CNBC!! Housing numbers are NOT doom and gloom!

“Hey Kathy, I hope you are doing ok, these housing numbers are terrible.”

This and variations on the theme are the messages on my VM and in my email box this morning.

What?? I am doing great! (#3 Agent by Wellesley Market Share 1/1-7/31). And the local real estate market is doing just fine!

The talking heads are all over the news today with a ‘sky is falling’ scenario because existing homes sales are off dramatically from June to July this year.

Hello??? There was a big tax incentive to go under contract by April 30, and close by June 30. Of course we had a big drop in closings in July. 2010 buyers closed in May and June. However, a close look at the facts shows that Single Family sales Year To Date are up compared to 2009.

MLS PIN covers most of Eastern Massachusetts. Here is the number of closed SF sales:

June 2009 June 2010

4246 5145

July 2009 July 2010

4493 3138

Total Sales Total Sales

1/1-8/25/2009 1/1- 8/25/2010

22,561 24,242

MLS PIN Sales for Eastern Mass are up by 1,681 transactions Year to Date!

So why all the doom and gloom?

In Wellesley, the news is even better. Wellesley is usually the last to fall and the first to recover. We are way up in Single Family sales YTD.

June 2009 June 2010

34 69

July 2009 July 2010

38 36

Total Sales Total Sales

1/1- 8/25/2009 1/1- 8/25/2010

155 220

The drop from June to July 2010 was completely expected. August closings will be soft as well. Prices are still extremely sensitive, but buyers, encouraged by the lower prices and the willingness of smart sellers to negotiate, are anxious to take advantage of the ridiculously low interest rates. I expect business to pick up after Labor Day and anticipate a reasonably healthy fall. It will not be nearly as strong as Spring 2010, but I expect sales to beat Fall 2009. You heard it here. We’ll see!

If you are thinking about buying or selling in Wellesley, or anywhere in Metro West, please contact me: (Don’t’ forget it is Kelley with an Ey)