Austin Real Estate Guy Blog

Sam we are seeing a similar trend in Nashville.  Our home sales for February 2008 are down 26.5% from February 2007.  Thankfully our median sales price only dropped by $1,900 from $169,900 to $168,000.   We're all feeling the crunch right now but I can see a turn for us in the future for the better (fingers crossed).  Rates seem to be staying pretty steady and the FHA loan limit increase should help gain some consumer approval.  Hang in there though, it looks like it's going to be a bumpy ride until we get there!

Sam- Just goes to show that historicaly speaking buyers are always 6 months ahead of the market and sellers are 6 months behind. This data comes almost 6 months to the day that we saw that massive inventory increase in September.  Prices had not started to reflect this until just now.  Personal Example - One of our listings had been on the market since January 1st with no offers.  Last week we lowered the price 2% and had a offer within 24 hours.  Just goes to show buyers are still buying homes priced right.  Sellers should price right now before prices drop further and interest rates go up.  After all a .5% increase in mortgage rates offset a 5% decrease in price.