Second Quarter Sales Off From Last Year

 by Gerald Frendt       

Slow market demand in March offset early gains reported in January and February, making the First Quarter of 2007 nearly identical to the same period in 2006.  April was much worse.  Sales compared to last year are down in nearly every price range, with an overall decrease of 34.8%.  Homes priced over $200,000 were most severely effected, with a decrease of 64.7%.  This is comparing to a period that everyone thought "ugly" a year ago.

The supply of homes continued to build during the month with 46 more homes, after a March increase of 50.  The "Months Supply of Housing" increased from 11.6 at the end of March to 12.3.   

The National Association of Realtors defines a "Buyers Market" as a market where the supply of homes currently on the market exceeds the historical demand for homes by more than six months.  For example, if a market normally has 100 homes a month selling and there is more than 600 homes on the market, it would meet this definition.

By this definition the Port Huron Market for homes has been in a severe Buyers Market for more than two and one half  years, with an overall supply climbing from 6.3 months to the current 12.3.  We track twelve price ranges and find a great variation - but all would be classified as "Buyers Markets".

If selling, it is helpful to know how many buyers will likely "surface" during your time on the market, and how many homes you will be competing with for those buyers.  Your market strategy should take into account a price range of $10,000 to $25,000, with homes of similar location, age, size, and amenities.  Homes are still selling and the sellers who "know the market" have an advantage in attracting a buyer to their home.

The big news of the month was the announcement of the Chrysler plant in Marysville, ground breaking is scheduled for this month and maybe new confidence will be felt in the market.