October homes sales plunge 45-50 percent!

Posted by Jeff Aughey on Thursday, October 30th, 2008 at 8:54am.

The recently released National Association of Realtors report for September Existing Homes showed sales rose for the first time since July 2003 as compared to a year earlier. Good news right? Not so fast. Keep in mind that this report reflects homes that actually closed in September 2008 which means that the homes went under contract in July and August. This was before the massive real estate slowdown which hit when the finacial markets went into turmoil in September. When the reports come out that reflect our current October 2008 real estate market, the headline will most likely read "Largest drop since the records have been kept!" or "45-50% drop shocks the market". The news media is better than I am in creating sensational headlines but you get the idea. These ugly reports will come in the following order: the October pending sales report due out on November 7th, October new home sales on November 26th and November existing home sales due on December 23rd. These sales reports will all reflect what you can see in real time on the Alphahomes Sales Trends page. I report pending sales so you get a view of how the market is doing now. I keep the figures regularly updated so check them often to keep up with the real estate market in Alpharetta and Johns Creek, GA. Since it is near the end of October it is safe to say that our sales will show a drop of about 50% over October last year and September of this year. I am confident that national data will be similar. So now you know what others will see when the above national sales reports are released and you can say you heard about the carnage here first. Since I don't want to end on a negative note, please realize that this dramatic pullback will be temporary. I am hopeful that after the shock of the rapid drop in stock prices wears off that real estate sales activity will pick up. It is not going to return to 2004-2006 levels so don't look for that but I think we can get back to 2007 levels within the 12-to 18 months. I will be sure to keep you updated frequently. All the best, Jeff

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