Tuesday, March 12 2013
Last week, Evansville home sellers saw more than the usual number of reasons to look forward to this spring’s local home sales selling season. It looked like the opposite of the lengthy real estate “Perfect Storm” that caused freefall across the national landscape.
Signs pointed to the possibility that we may be headed into the opposite market conditions. Webster’s Dictionary says the opposite of ‘storm’ is ‘calm’ – but I don’t think you would callEvansville’s home sales outlook a “Perfect Calm.” Far from it!
Some of the signs:
- Falling Inventory. Per the NAR’s Existing Home Sales Report, there’s a nation-wide shortage of total inventory. By the end of January, it had fallen another 4.9%: lowest in seven years. Raw unsold inventory hasn’t been this low in 14 years! Our current month’s inventory is 7.13 months, meaning it would take 7.13 months to sell all listings.
- Rising Demand. Per last week’s National Association of Home Builders’ News and Alerts bulletin, “housing demand continues to return.” NAR Chief Economist Lawrence Yun, pointing to buyer traffic that is up 40% over a year ago, states flatly, “We’ve transitioned into a seller’s market in much of the country.”
- Buyer Attitude. Also last week, the Conference Board’s Consumer Confidence Index showed a rebound from January. The ‘Present Situation’ index rose sharply (from 56.2 to 63.3). This remains the only less-than-stellar point of contention, I think one area could be a tipoff to gathering strength: the proportion of those expecting their income to rise is now growing, those expecting the opposite, falling.
If this spring turns out to be the opposite of a Perfect Storm for local home sales, will conditions improve further? Should sellers wait? The falling inventory measure might suggest otherwise. If the NAR’s appraisal is correct, now that these trends are consolidating, “…it would seem likely more inventory would come to market.”
If you are a local home seller who’s been waiting and watching for the right moment to enter the Evansville home sales listings, I hope you will consider giving me a call soon. You can reach me on my cell phone 812-499-9234 or email at Rolando@RolandoTrentini.com Comments:
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