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September 23rd, 2008 12:34 PM by David W. Welch
Sales look like they may be a bit off from August. Buyers may be wary of everything going on with the banking industry, or maybe it's just our normal slowdown in the fall. Either way, it looks like we may not go over 1,100 sales for the month. That could change considerably though with over 3,600 pending contracts. Typically contracts close very close to the end of the month, and it usually benefits the buyers regarding their closing costs to wait to the last day of the month.
Of the 725 closed sales so far this month, the big number is the median price. Right now the median sales price stands at $188,000. That is $12,000 less than last month or a 6% one month drop in price. The bailout plan that is being worked on right now, may encourage lenders with foreclosed properties to reduce their prices even more to get these off their books further reducing prices. It could have the opposite effect, and cause them to stand more firm on their prices since the securitized mortgage instrument is being purchased by the government.
I am not sure of all the details of this plan, but it could actually mean that the government will take over these properties themselves. If that happens, they may take them off the market altogether for some period of time, while they get their processes in place. I believe this last option may be the best for stabilizing the situation, but possibly the most costly due to the cost to manage the properties.
www.DavidWelch.com, Orlando Real Estate Blog