According to the latest forecast by the National Association of Realtors®, tightening credit standards for those applying for home mortgages will likely dampen home sales in the short term and postpone an expected recovery for existing-home sales until 2008.

 

Lawrence Yun, senior NAR economist, said unusual disruptions in the mortgage market are dampening the outlook for home sales, notably for August and September.  “There’s been an unusual hit to home sales, starting in March when subprime problems emerged and more recently when problems spread to jumbo loans, with many potential home buyers on the sidelines.”  He noted, however, that “the volume of existing-home sales this year will be better than 2002, which was the second year of the housing boom.”

 

Let’s take a look at August sales statistics to see how the market looks in Midtown Montgomery.

Pending sales dropped by 40 percent this August compared to August 2006. The number of homes sold also dropped by 19 percent. Market times increased from an average of 70 days in August 2006 to 100 days this August.

On a positive note for sellers, the average sales price increased 25% from $136,721 last August to $183,279 this August.  August 2007 saw only 9 homes sell under $75,000 and only 13 sold under $100,000.  In contrast, August 2006 saw 14 sales under $75,000 and 20 total under $100,000.  Additionally, 2007 saw 9 sales over $300,000 as opposed to only 4 in 2006.  As they move up to larger, nicer homes, owner-occupants increasingly choosing Midtown over other upscale areas!

Clearly, however, the investor "fix and flip" market segment has begun to dry up - no wonder, given the amount of negative publicity in the national media! 

Midtown
Montgomery

Pending
Listings

Sold
Listings

Average
Market Times

Average
Sales Price

August 2007

40

47

100

$183,279

August 2006

60

58

70

$136,721

As these statistics show, it is still a great time to consider buying a Montgomery AL home.  To begin searching for Montgomery AL homes, please use my complimentary MLS Search, or call me at 1-800-HAT-LADY.  If you are thinking of selling your Montgomery AL home, please call me or visit MongomeryHomeInfo.com today to receive your complimentary comparative market analysis.  We can work together to get you a great deal!

 

Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed.