A few highlights:
The median sales price for the entire market area in 2005 was $255,000 which is $30,000 more than the previous year’s figure.
The inventory shortage that has plagued our area for the past few years saw great improvement during 2005. As of Early January, 2006, our database has 1,588 homes actively listed for sale.Â That is an increase of over 500 more homes on the market than this time last year. We can expect around 300 homes to be purchased in January. That means that there are roughly 5.3 homes available in the entire market area for each buyer. While this higher inventory will cause a minor slow down the pace of price increases, we are still 20-30% down in inventory compared to the mid-1990’s.
The last time we were in a buyer’s market (according to my mother, Betty) was about 10 years ago. Might we be on track for another one? The 30-year fixed rate mortgage rate in 1990 was 10.13; rate in 1995 was 7.93. Rates this week are 6.10. Unless rates skyrocket, I don’t see the market becoming strictly a buyer’s market (yet).