by The KCM Crew on September 15, 2010
Yesterday, we wrote a blog post about headlines that may result from the next few monthly reports issued by National Association of Realtors (NAR). The post addressed the fact that there were extenuating circumstances (the homebuyers’ tax credit) that would give the perception that demand had fallen off the charts. The analysis given explains why we believe this. However, we want to make it clear that we never said that a real estate recovery was imminent.
Any recovery in prices will be determined by supply and demand. In yesterday’s post, we only looked at the demand side of the equation. We realize the growing inventory of homes is a concern and will continue to put downward pressure on prices. You can search the word ‘price’ on this blog for a plethora of articles on the issue.
But, there seems to be a growing number of people who believe that houses are not selling. We fear inaccurate headlines may help bolster this belief. That was the purpose of yesterday’s blog – to let everyone know that HOMES ARE SELLING!!
The last NAR Existing Homes Sales Report showed sales were at the lowest level since 1999. Yet sales were still at:
“a seasonally adjusted annual rate of 3.83 million units”
That’s an average of over 10,000 homes selling a day. Ten thousand yesterday, ten thousand today, ten thousand tomorrow and ten thousand each and every day.
There are buyers in this housing market. You can sell your home. That was our point. But, with all the competition out there you have to list it at a compelling price.