Fritz Pfister

October turned out to be a trick and not a treat for local home sellers. Closed home sales were down 19.7% and sales pending were down by 20.7% compared to October 2006. This falling on the heels of closed sales being down in September by 17.6% and pending sales down 8.7%. This is not the news home sellers wanted to hear as the market stares the slowest selling season in the face; old man winter.

The good news for home sellers is that the number of homes listed fell by 7.5% in October, however remains at record highs. The median sale price was up significantly from $93,250 in October of 2006, to $104,000 this October. The anomaly in the market is that for the year the median sale price is up to $104,950 compared to $99,900 during the first ten months of 2006. All time record supply, weakest demand in four years, and prices are up? Please have Walter Williams explain this defiance of the laws of economics.

The back to back drop in the number of homes sold in the market was only the second time to occur in nine years, and the last time was in November/December of 2006. The two primary reasons for the slowdown is the negative media lowering consumer confidence regarding housing, and satisfied demand.

If you don’t believe that the media puts a negative spin on their reporting read what was reported about the good economic news this week. When the Fed reduced the the Federal Funds rate by one quarter percent, good news, the media wrote the reason was to; “survive the strains of a deepening housing slump that is likely to crimp growth in the coming months”. When they reported that the economy grew by 3.9% in the third quarter, making this the strongest economic growth in four years, the media reported; “an impressive performance even as a credit crunch plunged the housing market deeper into turmoil”. Those quotes were not attributed to any official source, it must be the reporters opinion.

The media could just as easily report with headlines; “The best time to buy a home in history”, however that would be good news for consumers. Prospective home buyers have the largest inventory of homes to choose from in history, stable to falling home prices, and historically cheap mortgage money. The last time the market favored buyers this much was in the 1980’s when interest rates were at 20% or higher, however only the rich could afford to buy a home. Not so in today’s market with thirty year mortgage rates around 6.25%. This buyers market is an opportunity for almost everyone, not just the rich.

For the year through October compared to 2006, home sales are now down 6%. With the current trend the Capital Area Association of Realtors member brokers will fall below 4000 home sales for the first time in four years. There are currently 1889 homes listed for sale with the local Realtors, up 5.6% from a year ago. The trend forecasts that only 1 in 5 home listings will sell and close between now and the end of March 2008. This is not a comforting thought for folks that must get sold. This is going to be an expensive proposition for them.

As a full time Realtor in my twenty-first year of service, I guess I should thank the media for their sensationalistic, irresponsible journalism that has killed consumer confidence in housing. There has never been a time when home sellers needed a seasoned professional more than in today’s market.

Congratulations to the media for harming the local housing market. I wonder with the recent announcement following the sale of the local paper, that early retirement packages are being offered to cut the workforce, I wonder how these people will feel when they have trouble selling their homes? Lose their jobs, and may or may not be able to sell their home to relocate. Mostly due to the negligent reporting of their own employer.