1st Quarter August GA Home Sales Summary
Well, it’s time to take a good hard look at how the 1st quarter numbers of 2009 stack up, so here goes:
- Overall sales are down 17% on 2008 figures for the first three months of the year. March sales rebounded to 11% down on March 2008, much better than January (down 24%) and February (16%) – so that 17% figure may go lower as we enter the better home sales months.
- Expect April figures to decline slightly. A full week of out-of-town guests for the Masters Golf tournament always puts a damper on the April sales figures – and I expect that trend to continue. Since 2003, only one year saw an increase in residential says in April over March – 2006. Every other year in that period has shown decreased sales activity for April over March.
- The average sales price for March of 2009 was $157,959 – almost $4,500 higher than the same period last year.
- Richmond and Columbia County continue to pace sales in the CSRA – with the west Augusta and south Augusta regions posting slightly higher totals than the Martinez/Evans/Grovetown (North of I-20) corridor of Columbia County. Harlem and Appling continue to post weak sales figures – reflecting the smaller population of those areas of the county.
- As of this writing, 30 year conventional mortgage rates in the Augusta area are hovering close to the 4.65% mark, with VA and FHA rates also well below 5% - continuing the historical lows we’ve seen for the last several months. There will probably never be a time period in my lifetime when homes are this affordable.
THE BOTTOM LINE: If you are selling – get your home on the market sooner than you planned. We continue to weather the mortgage crisis storm and inventory is still high. This is hand-in-hand with Gary Keller’s Vision Speech from the Keller Williams Family Reunion. I’m paraphrasing, but he said in February that “the next six months will probably be the worst economic times you will ever see in your lifetime.” With over 400,000 ARMs adjusting in 2009, there will continue to be foreclosures at record levels. Expect things to bottom out by August, with the housing market posting a mild turnaround by the early 2010 months.
If you’re buying, you probably won’t see this level of choice again for quite some time, and the concessions offered by Sellers in this market are phenomenal. Interest rates are still historically low – how long that will last is anyone’s guess. I certainly see rates continuing below 6% through at least November if not longer.
At the end of the day, good homes sell in any market. If you are a First Time Homebuyer or have not purchased or a primary residence in the last three years, this is a perfect time for you - the $8,000 Tax Credit is an outstanding incentive.