Well I have waited and waited for enough data to transpire and I thought I would share, at least my perspective, on the condition of the local housing market in Columbia, Missouri. Some of you may have seen that new homes sales nationwide were up 43%, however what has been slighted is the fact that the majority of this increase 60% or so, was isolated to the Northeast. In fact, Midwest new home sales were down a U.S. low of a little over 28%. In a later article toward the middle of last week, the report of existing home sales data was released and the numbers were at a 14 year low. Again with a huge proportion of this data isolated to the slumping housing market in the Midwest. What does this mean for us here in Columbia, Missouri? Are we still feeling the impact of this? How much time is left?
The answers to the above questions is not a science, however there are some things I would like to point here. First, it is my belief that the Columbia, Missouri housing market is alive and well for homes priced below $250,000. There are plenty of buyers in this price range and there is a plethora of nice homes to fill the mold of almost every buyer's taste. However, homes priced over $250,000 have really hit a lull and will continue to do so for quite some time. Why? Well for starters it takes a qualified buyer to afford this type of housing and to add to the dilemma there is over 435 houses in this price range and not nearly the demand. I see this market getting better but I believe it will take the remainder of this year and over half of next year to start seeing a reversal. The bottom line here is, rates are rising, gas prices are rising, and the housing market is in a slump. This does not add up to a successful sale if you are one of the many sellers in and above the $250,000 market. Buyers are simply looking at lower priced homes given the fact the commodity items are on the rise with no relief in site.
I know of several sellers including myself who have felt the pain of this market. Luckily for us construction permits are down and more builders are moving toward the ever popular Lake of the Ozarks to build and sell their homes. We need to shrink our inventory of homes and we need rates to drop again and gas prices to be reduced drastically to help us. There are numerous factors that determine how successful the housing market is and unfortunately for us most of them are completely out of our control. Good luck and as always your comments are welcomed!
Brought to you by the Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker!
The answers to the above questions is not a science, however there are some things I would like to point here. First, it is my belief that the Columbia, Missouri housing market is alive and well for homes priced below $250,000. There are plenty of buyers in this price range and there is a plethora of nice homes to fill the mold of almost every buyer's taste. However, homes priced over $250,000 have really hit a lull and will continue to do so for quite some time. Why? Well for starters it takes a qualified buyer to afford this type of housing and to add to the dilemma there is over 435 houses in this price range and not nearly the demand. I see this market getting better but I believe it will take the remainder of this year and over half of next year to start seeing a reversal. The bottom line here is, rates are rising, gas prices are rising, and the housing market is in a slump. This does not add up to a successful sale if you are one of the many sellers in and above the $250,000 market. Buyers are simply looking at lower priced homes given the fact the commodity items are on the rise with no relief in site.
I know of several sellers including myself who have felt the pain of this market. Luckily for us construction permits are down and more builders are moving toward the ever popular Lake of the Ozarks to build and sell their homes. We need to shrink our inventory of homes and we need rates to drop again and gas prices to be reduced drastically to help us. There are numerous factors that determine how successful the housing market is and unfortunately for us most of them are completely out of our control. Good luck and as always your comments are welcomed!
Brought to you by the Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker!
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