By Sara Huebener
All’s Quiet on the West Savage Front, at least in terms of new listings and active inventory. Inventory has reached an all-time low of just 11 homes. 18% of this inventory is short sales, and there are no foreclosures on the market at this time. One property is pended – it’s a short sale transaction in The Pointe. (Long pending periods are very normal for short sales, though this particular transaction is pended a bit longer than normal.)
The fall sales have been wrapped up, with five sales closing on paper. 60% of that activity occurred in the Woodhill neighborhood. Several of these sold properties experienced very high market times, and by examining their CDOM (Cumulative Days on Market), it is evident how overpricing homes in a declining market adversely impacted the seller’s net in the long run. Starting high, and then later reducing price in an attempt to get in line with the current market price is called chasing the market. In most cases, the high market time that accumulates until a property reaches market value is met with a lowball offer from a buyer, who wonders “what is wrong with the property?” even when the home might be in perfect condition.
What to watch for: Watch the effect of the new $6,500 Tax Credit for existing homeowners. It applies to those who have lived in their homes for at least five years and will purchase a new primary residence, with a binding Purchase Agreement secured by April 30, 2010, closing no later than June 30, 2010. More about this on our blog…. We are also monitoring the impact of the new foreclosure-postponement procedures that went into effect this summer, and we’re keeping tabs on how they will impact on our local housing market.
Inventory is down for Savage as a whole and Scott County. This is typical for this time of year.
Our West Savage absorption rate is 3.66%. That means if zero new homes come on the market, it will take 3.66 months to sell our existing inventory. It has trended downward. Let’s see what January brings!
Merry Christmas, Happy Holidays, and Happy New Year, from our West Savage home…to YOURS!!
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