Activity in the Queen Anne's County real estate market this past month, November 2007, followed the same cooling trend as the weather.
The total number of homes sold
dropped to just 32 units, down from 58 in November 2006.
dropped to just 32 units, down from 58 in November 2006.
We are down 44.83% compared to last year this time. This is more or less what we would expect as we move into December and given the landscape we are experiencing.
The average days on the market is up 49.12% or 170 days compared to last year of only 114 days on the market.
According to the experts we still are experiencing 11 months of inventory and depending on who you listen to or which newspaper you read - we are either near the bottom of the bubble or we have reached the bottom. The housing market has always been cyclical, with peaks and valleys.
Some experts economists will tell you "this housing or mortgage bubble" as I like to call it, is the worst they have seen since the Great Depression. Others refer to it as comparable to the housing slumps in the '80s and '90s and the "dot com" bubble. Still, others speak of gloom and doom causing serious economic problems for years to come.
Past housing cycle studies indicate that the median span of downturns is about 24 months. The unsettling news is this housing market cycle is already about 20 to 21 months into a downturn, and it doesn't appear to be rebounding just yet.
It is apparent that we have an over abundance of homes on the market and experts declare that until sellers face reality and lower their asking prices we will remain in this lockhold.
A major statistic to keep your eyes fixed on is the job growth and unemployment. If we start to see a slowing in jobs and a rise in unemployment nationwide, the housing market problems could multiply.
*Nov. 2007 QAC Homes Sold Source: Metropolitan Regional Information Systems, Inc.
