Halfway through the month of July now, and no huge surprises with the June actual numbers and the preliminary July numbers are showing that the market malaise continues. The one number that stands out to me is the number of Active Bluegrass homes on the market, which was 6842 on June 1. This is becoming the “elephant in the room”…we hit all time highs in July through September of 2007, when Active listings exceeded 7000 for the first time in our history. I expect to see us hit that level again in July of this year, as Pending sales continue to lag behind seasonal averages. The effect of higher inventory is usually more pressure on pricing, as sellers anxious to move their homes try to make their home stand out in the marketplace, usually through price reductions.

In the short term, my personal experience has shown that the last 2 weeks of July and the first 2 weeks of August have been a very quiet time for sales activity. I think people use that time to get in their last getaways of the summer before the kids get back in school.

On a positive note, interest rates continue to stay at or near historic lows. The impact of these lower rates is so much more significant than the tax credits that were offered, but for some reason, the public doesn’t seem to recognize that. The quick gratification of an $8,000 check from the government is more appealing than saving tens of thousands over the life of the loan. Here’s what I mean:

The following has been updated to reflect the actual numbers for June, and a projected figure for July 2010:

*July 2010 projected based on current data available through 7-15-10.
     

As always in this type of market with lots of supply, it is crucial for sellers to be priced right and have top notch condition. Buyers have so many choices today, and buying decisions can be based on what might seem like insignificant factors.

Please feel free to call or email with any additional questions you may have. My goal is always to provide accurate, professional real estate advice.