Wednesday Market Update: A review of local real estate market stats supports a reviving market picture. Year to date and 90 day review comparisons to last year same time show positive movement of the market. More units have been sold during each of the time periods compared to same time last year. While the number of units sold in Trigg county and their prices have increased, the number of sales is still too small to make statements about trends. Looking at the entire MLS, however, presents a better picture. Units sold this year is 102 while same time last year it was 90. Better than a 10% increase in houses sold. MLS stats on Average Sale Price (ASP) and Median Sale Price (MSP) are also up. ASP is up 8% and MSP is up 11% over last year during the same period. These are figures that support a strengthening market.
Of some concern is the inventory (units for sale) available. This figure continues to decline. While listing numbers usually do decline this time of year, the fact is we are at a 5 year low on available inventory. Should the market contine to improve and the number of buyers increase the lack of inventory will be an obstruction to balancing the market. Look for a swing from Buyers Market through Neutral Market and into a Seller Market.
By the way, mortgage interest rates continue to be historically low. Market analyst call for these rates to remain the same through 2014.