MLS data for Windham County shows median home prices during the first three-quarters of 2014 running 5.26% below median home prices for the same period a year ago.
National real estate and other economic indicators are mixed and increasingly volatile, with even a fragile recovery, uncertain. The National Association of Realtors® (NAR) reports that prices for existing homes nationwide rose by 4.8% in August compared with the previous year, despite the number of sales slipping by 1.8%.
At best, this is a mixed message because historically prices can rise even when other indicators foreshadow a decline. We know the current market is struggling, but can we discern where the market is heading? Last week I spoke with a colleague who has been in the business for more than 30 years. “I don’t know what to make of this market,” he said. “ I don’t see any trend that makes sense.”
According to NAR chief economist, Lawrence Yun: “On the positive side, first-time buyers have a better chance of purchasing a home now that bidding wars are receding and supply constraints have significantly eased in many parts of the country.”
Lawrence Yun always says that it is a great time for home buyers, and this time he is right: There are great buying opportunities. The ratio between number of homes listed and number of homes sold in Windham County shows us that for the past 7 years, out of 10 homes listed, barely 4 have sold. With a 40% likelihood of selling, the seller who turns down a viable offer today, is likely to end up having to sell a year later for less money.
Attached is a spread sheet showing statistics for local home prices over the past 12 years.
Steven K-Brooks, Principal Broker
