The trend has been our friend for some time now.
Home prices in many cities have sunk Titanically over the past two years – homes prices in The Woodlands have smiled with a positive appreciation rate.
Real estate economists believe that a For Sale Inventory of 6 months represents a balanced market. Months Supply of Inventory in The Woodlands, Texas is currently 5.6 months.
The Big Question! After hurricane Ike, the financial market meltdown, plunging oil prices and the seasonally slow sales Holiday Season, what will the our real estate market look like in the first quarter of 2009?
I believe that the Average Sold Price will drift downward. But, before we panic, I believe Average Sold Prices will drift downward because more affordable homes are being sold, not because sellers are slashing their prices. Home prices in general will remain stable. The Average Days On Market for sold homes will rise to slightly above 100 days.
I believe Months Supply Of Inventory will continue to float upward, cresting the 6 month mark in January. I think economic stimulus will re-inflate home buyer confidence and after the 1st of the year, Months Supply Of Inventory and Days On Market will crest at less than 7 months and an average Days On Market between 100-120 days. Both will begin to decline again as we enter Spring.
Recap:
Home Prices Stable
Days On Market is drifting upward approaching 100 days, crest and begin to drop very early 2009
Months Supply Of Inventory will bleed into balanced/buyer’s market, then recede into seller’s market territory very early 2009 – think mid January, late February.
If you’d like to review, parse, study, see the data yourself, you can download the entire collection - Market Reports Collection, The Woodlands Texas / December 2008.
Any questions, feel free to give me a call. – Ken Brand 832-797-1779
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