Market Conditions in 38671>Question Details

C.F. Moore, Real Estate Pro in 38671

I have heard that sales of larger homes will increase in the first quarter of 2010. Anyone else hear that?

Asked by C.F. Moore, 38671 Thu Jan 7, 2010

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I have not heard that either. If you watch the market trends, our absorption rate in DeSoto county has shrunk from 9-12 months of inventory, to 7-9 months of inventory. That is a positive. It is not really reflecting in sales, except in Southaven, average sale almost doubled in 2nd half of the year over 1st half.
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1 vote Thank Flag Link Thu Jan 7, 2010
My main market area is here in La Jolla, where most of the homes are in the jumbo market.

I agree with Dunes on this one....The sales #s may go up a bit as prices go down, but there are a few problems. There are still not stated income loans, so financing is tough and the number of NODs/NTSs on these larger purchases are still skyrocketing so the many of the sales will be coming from the distressed side...bringing prices down.

In contrast with conforming markets where the supply (at least here in California) is under 5 months, the jumbo markets are seeing supply still between 10-25 months of inventory. That is a normal cursor that prices will continue to fall.
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1 vote Thank Flag Link Thu Jan 7, 2010
I had not heard this, either. I suppose you could theorize that with the tax credit being extended to non-first time homebuyers it would help the sale of larger homes. But, many still have the issue of negative equity. Interesed to hear what source that information came from.
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1 vote Thank Flag Link Thu Jan 7, 2010
I am sure that there is someone out there who has theorized that the market will pick up because the first time homebuyer income limit has gone up to $225,000 for a couple. it would make sense that if the homebuyer credit stimulated the market in the lower price ranges, that by giving people with higher income the credit, it could stimulate a higher priced market because these people naturally qualify for more expensive homes. You are saying that the homes will be larger, not they necessarily will sell for any more than they previously had.
0 votes Thank Flag Link Fri Jan 8, 2010
Thanks everyone for your responses. I actually heard this from a lender. I wasn't sure if he had inside information or too much Tequila on New Year's Eve. Thanks! CF
0 votes Thank Flag Link Fri Jan 8, 2010
Where did you hear that and what are you suggesting/thinking it implies?

Could it just be Larger homes might sell a bit more because the continuing Price declines have cause the Prices of them to drop back into a Price range some find acceptable for their Budgets?

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0 votes Thank Flag Link Thu Jan 7, 2010
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