Inventory in West Savage is still low, sitting at about 55% of normal spring/summer levels. There is no question that the Bank of America foreclosure moratorium has impacted foreclosure inventory, as many homes expected to hit the market as bank-owned have been postponed indefinitely.
Buyers have been hitting the streets early this year: A slight bump in interest rates created some urgency. Metrowide, pending sales are up 3.7% for January 2011 in a year-over-year comparison. Even though a larger percentage of home sales have been foreclosure and short sale inventory (compared to traditional,) the traditional seller saw a median sales price increase. Even with all this, home affordability is soaring. Interest rates are still low and pricing very competitive.
Speaking of affordability, the Freddie Mac First Look Initiative is a new program in which buyers searching for their primary residence have up to 15 days to buy a home without competition from investors. Many of these homes come with a two-year home warranty, and in many cases the banks have done many repairs and cosmetic updates (e.g. new carpet.) This initiative makes buying a bank-owned home very attractive for some.
A hot topic in West Savage has been the Workforce Housing proposal, regarding the 14 acre parcel of land behind Rainbow Foods. On February 10 the Savage Planning Commission voted against changing the zoning from Commercial to Mixed Use. On February 22, the City Council revisits this issue, and may uphold the zoning change. More updates will follow on WestSavageBlog.com after the meeting.
Single family/townhome inventory in Savage and Scott County as a whole is down. Our West Savage absorption rate is 10.5. That means if zero new homes come on the market, it will take 10.5 months to sell our existing inventory.
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