Market Conditions

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It is the end of the year and I wanted to give you a market update. I think it is really important because the character of the market has changed substantially in the last couple of months.

During the summer months, June, July and August, the Auburn market experienced modest increases in values. I had hoped that this signified the beginning of a turn around.

My recent analysis shows that the market took a downturn in early September. We went six whole days without a sale! Since than prices have been declining at a far greater rate than we have experienced in recent history,

After careful study I found that the decline in values was primarily due to the type of properties that were being sold. The most re cent sales data included far more bank-owned and short sale properties than sales of properties that were not distressed.

The overall values have decreased because bank-owned and short sale properties sell for 22.5% less at the high end of the market and 25% less at the lower end of the market.

Banks are obviously more interested in selling properties more quickly than netting maximum proceeds from the sale. I hope this helps, Sue.

Jared Michael, Appraiser

Thank you Jared.

Like you, our agents have been noticing the decrease in sales of non-distressed property. It is interesting that you plotted a full six days without a sale. I remember holding my breath until I was blue in the face.

Jared, based on what you have told me, and what I am seeing in my practice, it is clear that this market is historically without precedence. I am confident that in years to come those who did not take advantage of this market will wish they had. Those who embraced today’s opportunities will be richer for it.

Home sellers need to be aware of the intense competition and list their property at a price that will allow it to sell quickly. The longer a home sits on the market the less a seller will net.

Understanding today’s market conditions can be a matter of good Home $$s and Sense,