ABSORPTION IS DOWN over 4.5 months in less than a month! Current absorption is hovering between 12-13 months of inventory. There has been a dip in average prices in the rental market. I think the renters are turning into buyers and when we should be seeing a seasonal rise in rentals, we saw a pretty good dip in units rented! Are the renters buying?
Here is a snapshot of valley listings:
(Nov/Dec 2007) All SFR, Townhome, Condo Listings:
- Listings (12/9/2007): 25691
- Under Contract (12/9/2007): 2304
- Sold November: 1137
- Month's Inventory: 22.5
(Jan/Feb 2008) All SFR, Townhome, Condo Listings:
- Listings (2/10/2008): 23665
- Under Contract (2/10/2008): 3107
- Sold January 2008: 1164
- Month's Inventory: 20.3
(Feb/Mar 2008) All SFR, Townhome, Condo Listings:
- Listings (3/20/2008): 22,644
- Under Contract (3/20/2008): 4516
- Sold February 2008: 1318
- Month's Inventory: 17.2
(Mar/April 2008) All SFR, Townhome, Condo Listings:
- Listings (4/16/2008): 21983
- Under Contract (4/16/2008): 5390
- Sold March 2008: 1747
- Month's Inventory: 12.6
In a Little Under One Month: Listings are down 661 units, pendings are up 874 units, closings are up 439 units and absorption is down 4.5 months. I was thinking that our pendings were leveling off when I wrote last month's report but we are still seeing an amazing rise, plus the closings! This is amazing to watch the market turn in front of our eyes. No doubt the FHA limits rising + prices dropping has helped stimilate our market and the pent up demand!
Renee, sound like the market is starting to move in the right direction. I like your customization!
I'm certainly seeing renters becoming buyers in Sacramento. Buyers aren't just jumping down from the fence, they are hopping over it. Glad to see the Las Vegas market picking up steam as well!