What is the state of our market? Part One...

There are lots of interesting rumors, truths and lies going around related to our market. Most of this stems from the national state of the economy and the news we are being fed on the internet, television, and newspaper: that we are in a dire state and that the sky is falling.

While it is true that there have been times that the market has been hotter, we are in no way in a state of emergency. Foreclosure facts and figures even from places as close as Boise have little real affect on us. We are impacted by the national and state issues, but we are not strangled by them either.

So what does our local market look like right now? The following are some numbers pulled by my brokers in the last few months.

There are currently approximately 390 homes on the market. Most of these are 3 and 4 bedroom homes, and their average list price is around $228,000.

Last month, approximately 31 houses sold. Their average sale price was $150,800. They sat on the market an average of 158 days. They sold for about 94% of their list price.

Examining these numbers, we learn a few facts about our market.

1. The lower priced houses are selling. We are seeing that houses priced under $150,000 have a good chance of selling.
2. We have 12 months of inventory sitting there. In a fast paced market, we usually have about 3-4 months worth.
3. If you are planning to sell, you need to expect even if you are priced right to sit on the market for a good 5 months.

Over the next few weeks and posts, I will explain how these numbers affect you!

Creative Ways to Buy a Home

Here are four ways to expand the box of beginning home ownership when you don't have the needed downpayment or credit to qualify.
1. Speak with your Realtor and lender to determine down payment programs that may cover part or all of the downpayment.
2. Work closing costs into an offer so that the seller covers them as part of the contract.
3. Ask a family member to be a co-signer on the loan.
4. You can try a lease with an option to buy. This will allow you to rent while you save up for the downpayment needed.
For more information, contact your local Realtor and reputable lender to help with your individual situation.

What to make of averages...

Averages can misinform. Picture a room with Bill Gates, Warren Buffett, and eight other people, each of whom earn $100,000 annually. If a statistician were to average the annual incomes of the 10 inhabitants, the average annual income would be several million dollars a year, even though eight of the 10 inhabitants make nowhere near that amount. It would be impossible to implement a successful sales strategy based on that average income. In other words, averages can be irrelevant.

Such is often the case with real estate. Home prices in Phoenix tumbled an average of 51% from 2006 highs to the present, while Dallas prices tumbled an average of 11%. Average these two numbers and you get an average decline of 31%, which makes the Phoenix market look more robust than it is and the Dallas market less robust. What's more, that average is even more misleading because it is based on an average of an average.

The point is, don't let national averages influence your opinion of the economy too much. Most business is local, and what's happening in one part of the country can be completely different from what is happening in another part of the country. What's happening in your part of the country is what's most relevant.

-- This article was taken from a newsletter sent to us by Brian Bledsoe; it is not our original composition.