Real Estate Auctions 13 Nov 2008 08:19 pm
Recent sales show us…..
that things are readjusting in Sumner County. The October sales report showed little change in prices on average, but the drop in numbers of homes closed, and especially the “new pendings” were significant. Nearly 100 less contracts were written in October of 08 than that of 07.
Another recent indicator has been the drop in prices per square foot that banks and builders have recently put on the market. You can now buy a new home in the Hendersonville area, 3100 sq ft, for $214,000. That same house a year ago was running in the 280-290k range. A bank recently closed a 2500 sq ft home for 157,000!
SO what are these indicators pointing to? Simple. Coming back to reality! When anyone and everyone could buy a house regardless of credit, prces started to inflate at a speed much to great for the market. This also spurred on a major upswing in new construction, especially in the 250-500k range. Two years ago experts begin to warn of overbuilding the absorption rate we could handle. And all that was needed for a “meltdown” was a hic-up in the economy. Well, here we stand, and the hic-up has come, and now people are starting to feel the pressure.
BUT, here is the bright side! Re-adjustments are both common and necessary! We could not continue at the rate we were going or we would have hit a much bigger wall and the fallout would have been to much to overcome. As it stands now, a small percentage of the area will suffer through foreclosure and loss in value. But the “sky is not falling” (at least not completely). Once we are able to take a breath, and the foreclosures have leveled out, and banks have reduced inventory to proper levels, we will find ourselves standing in a place called reality, from which we can grow!
If you would like to discuss this further, or want to know how this is going to affect you personally, feel free to give us a call anytime, 615-824-0044! We will be happy to give you a free consultation regarding your real estate and all your options!