Monday Market Memo for Dec 23-29, 2008
Notice how few new homes came on the market this week. Of course this week included Christmas so most people were busy with family and not listing their home.
We also went below 700 in total inventory this week. I expect the inventory to drop by more than 50 next week as we turn over a new year. It will remain low until February or so when it will begin to build.
|Average Price||Median Price||DOM|
Three of the 10 closed homes in the past week were new construction which shows a comparatively healthy market compared to other parts of the country. If a builder can still compete with the resale market you know that the prices haven’t dropped below the costs of construction.
Many parts of the country are completely driven by foreclosure homes that are selling from 40–50 percent lower than they did in 2005. We have seen a weaker market here in Alaska than it was in 2005 but we certainly haven’t seen price drops of that magnitude.
Of course the reason places like Pheonix, Florida, Las Vegas and California are experiencing such huge declines is because they had such a rediculously fast run-up in prices. We didn’t have that bubble either.