The following is a quote from the latest edition of the real estate newsletter that I receive from the Charlottesville Area Association of REALTORS (it goes out to all the REALTORS):
August Sales Slowest in 10 Years
This probably will not shock most of you, but sales in August took a significant dip. The 304 sales reported to the MLS in August were the fewest since 1998. Until August, the local market was soft, but doing well by historic measures. We had been tracking along with the 2004 numbers which were the third highest in local history. For the year, we are 620 sales behind last year (down 19.2%). As bad as that sounds, we are still on course to have the 4th highest sales year ever. The main concern in the market seems to be the negative press about the mortgage crisis. While our area is not part of the crisis, we are feeling the effects of this national problem.
That's not how I want to be greeted in the morning. It makes sense, however, and jives perfectly with a story I read today on USAToday.com regarding the number of pending home sales in July. From the article:
"Numbers like this should put to rest the belief that we've reached the bottom" in the housing market, said Joel Naroff, chief economist for Commerce Bancorp. "There's still a lot of pain that's ahead of us."
Ouch.
It makes perfect sense that if the pending home sales in July are down, then sold properties in August are going to follow. I'll be posting the August sales stats within the next few days, so we shall see how the local picture looks. Given the news I have been reading today, I'm not very optimistic.
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