October Report: Single Family Home Sales

Posted by Jeff Aughey on Wednesday, November 29th, 2006 at 8:18am.

Ok, it is time for me to admit that my neutral to upbeat feelings from last month’s report have to be adjusted. I hoped that our market would continue to buck the national trends and avoid a big drop in sales. Well the numbers for October were not very good and it looks like I will have to join the hurricane forecasters and adjust my thinking. Total sales for October were down 37.9% from October of 2005. This month there were no price ranges that were spared. The lower range (under $275,000) fell a whopping 46.7% as compared to October of 2005. The mid range ($275,000-$600,000) was down 32.4%, while the upper range (over $600,000) fell by 36.1%. Overall October sales and inventory figures showed that Alpharetta, Georgia had a 7.68 month supply of homes (defined as the number of homes for sale divided by the number of sales) which is a 113% increase from October 2005. A more detailed analysis shows the lower range had a 4.5 month supply, mid range was 7.1 months and the upper range had a 15.1 month supply. As compared to September 2006, total October sales fell 19% and the supply of homes increased by 21.7%. Only the lower range held up, as sales were down only 2.5% and there was no appreciable change in supply. The mid range saw sales fall 28.4% and the supply of homes increase by 37.3%. The upper range had sales fall by 8% and the supply of homes increase by 8.6%. Check back here in about ten days and I will have the November numbers posted. If the November sales track at roughly the same pace as they are now, then November is not going to be bringing any holiday cheer to the market. What does the jumble of numbers above tell us? If you are a buyer then the market is favoring your position. Interest rates have fallen below 6% and the inventory of homes is fairly high in most price ranges. Buyers should use patience and be selective about the home they purchase. Look around for a fair price and a great new home. If you are a seller then you have to play it smart. Make sure you home is in top condition and price it correctly. Nothing is more important than selecting the correct asking price! Although it may be tougher to sell in this market than last year, if you are planning to purchase another home you will be in a strong position to negotiate a good deal on your next home. Remember that I am always just a call away at (770) 329-4495. All the best! Jeff

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