My office is the largest selling company in the Eastern Shore of Mobile Bay, so it is likely that we are going to see changes in the market on our sales board before the news is out that the market has turned in our area. As of yesterday we have 10 sales on our board for October and one new listing. This is quite a change! For the last couple of years, because we have been in a definite "buyer's market" our listings have outpaced sales. This is a big deal, but we are waiting to see if this is a trend or an anomaly.
2010 through the first quarter of 2011 remain a mystery. The election in November may have a great influence, and no one has that crystal ball. All predictions are that we will see a very slow recovery, however we are greatly affected by all the foreclosures on the market and that continues to increase as large numbers of ARM loans are due to balloon this year and next year. If-as recent news has indicated-lenders such as Bank of America and JP Morgan stop or temporarily pause foreclosures, our market will be directly impacted. In other words, right now we simply don't know what is going to happen in this area. With the huge amount of inventory available and with interest rates so spectacularly low I can't imagine why anyone who is able to do so wouldn't purchase real estate right now, especially if you are planning on holding on to it for another couple of years. In several areas around Mobile rent prices per square foot are much more expensive than existing home sales prices. Yes, you do need to look at each area individually, but we are taling about the Mobile market, and that is what the case is here.