As mentioned on our Facebook page, I held off on posting the latest RMLS Market Action report yesterday so that I could get some clarification on the numbers being reported. Inventory is down to 10.2 months. It’s worth noting that in both 2008 and 2009 inventory climbed between October and November.
This month’s report says, “The average sale price for November 2010 declined 0.5% compared to November 2009. The
median sale price also fell 2.5%.” That is in contrast to the November 2009 report which said, “The average sale price for
November 2009 was down 11.4% compared to November 2008, while
the median sale price declined 9.8%.” In many respects we’ve seen improvement over 2009 but 2010 has still been a struggle for many. Accurate home pricing is important as ever and we’re seeing sellers taking their cues more from feedback and market conditions.
What will 2011 bring? My personal opinion is that the market will remain mostly flat. There may be some ups and downs but interest rates will be key in getting the market moving along with the creation of jobs and improved consumer confidence. If any of those go the wrong direction the real estate market is going to struggle. There will continue to be some great opportunities for some in this market. Others may want to sit on the sidelines and wait for their confidence to increase. The passage of a new tax bill is the first step.