Douglas County Real Estate Market Analysis for March 2009
Greetings Everyone!
Real estates sales continue to climb upward nationwide which is a positive sign. In fact, construction of new homes nationwide has also seen an increase according to the National Home Builders Association. In Douglas County the Planning and Building Departments report an increase in applications and permits. Even though these increases are only slight we are optimistic that they will continue for spring and summer which normally are our best months in the real estate business.
In Douglas County, new listings decreased by 13.4%, closed sales decreased by 23.9% and pending sales decreased by 9.6% during the the same period. However, comparing March 2009 to February 2009 pending sales grew by some 2.6% and over 12% since the first of the year. Closed sales decreased by 6.8%. It is important to note that pending sales are headed in a positive direction which will lead to more closed sales. We are still seeing sellers that need to sell drop their prices an average of 32.0% in order to get their properties sold. In other words, they are lowering their prices to match the market.
The average number of days on the market is up to 188 days or 6+ months which indicates a downturn in our area as far as values of real estate. We have over 20.9 months of listings for sale right now which is down from 30.3 months in January 2009. This is a positive note. In other words, if we did not list another property it would take over 20 months to sell all of our properties.
It appears that this would be a very good time to buy real estate and it is. With interest rates hovering around 5%, loan fees often paid for by the sellers and the stock market ever changing, investors and homebuyers should be putting their money into real estate. But they are not! Our economy is weak and with unemployment over 18% and rising in Douglas County, people are scared. The only way to recovery is jobs and we need to ask our local employers to hire people when they can for it is vital now more than ever.
Regards, Neil