The times are changing. The interest rates are so low I can't believe it...the inventory is good...the mean price has remained almost level for the last year.
Could this mean that values are holding steady and our area is immune to the forces at play?
We see properties which "should" be selling, and are not...and have to wonder. If prices and values are steady, why are these not selling? I believe the answer is that the mean does not indicate that property values are steady, but feel,
the ratio of sales of larger and smaller homes has changed. I feel with the expiration of the Income Tax Credit which applied to "first time" home buyers, we are now selling proportionally fewer of the smaller homes and proportionally more of the larger. As the mean sales price is roughly equal to that of a year ago some think the value of local real estate has remained unchanged through the financial crisis.
However, if the ratio has changed, the mean sales price should have changed also...it has not...the value of local real estate must have gone down in the recent past to keep the mean sales price constant.
There has been a reduction of nearly 25%+ in the number of sales from this time last year...this must have affected values. The time proven law of supply and demand.
Not a pessimist, but a realist. Give me a call...I'll tell you the truth.
BUYER OR SELLER YOU DESERVE TO KNOW.