In the past six months, seven brave home buyers have spent over $300,000 buying a home in Lumberton. Stop. Read that again. Since July 1, 2009 seven home buyers have spent over $300,000 buying a home in Lumberton.
Where's everyone else? Are you still sitting on the fence?
In the same six month time period from July 1, 2008 - January 29, 2009 there were fifteen sales at or above $300,000. Whoa! Read that again. Fifteen compared to seven. Now it doesn't take a math whiz to see that 7 home sales is less than half the number from the year prior.
This is the raw home sales data for July 2009- Jan. 2010.
- On average sellers accepted an offer that was 93% of their asking price
- On average it took 178 days on the market before accepting a contract
- All but one of the new construction homes sold for full price plus
Compare that to home sales data for July 2008- Jan. 2009.
- On average sellers accepted an offer that was 94% of their asking price
- On average it took 129 days on the market before accepting an offer
- Only two of the fifteen sales sold for full price or more
So why is everyone sitting on the fence in the residential home luxury segment?
Oh, my guess is psychology. People are nervous. Loans are harder to get but if you can afford a $300,000 home you've had a loan before and can probably get another one. Interest rates aren't getting any lower. The government isn't likely to start paying people to buy homes. Oh, wait! They have done that too. Have you heard of the move up home buyer tax credit or first time home buyer tax credit. What's it going to take to get people off the fence?
So for now the brave home buyers in Southeast Texas have an amazing opportunity. Buy when everyone else is afraid to buy. Southeast Texas home sellers haven't been this negotiable in a long time. When the market recovers and the buyers start jumping off the fence it won't be long before Southeast Texas home builders stop negotiating and home sellers stop taking low offers.
Still not convinced this is a good time to buy? Then stay right there on that fence. Just don't complain six months from now when Southeast Texas home mortgage rates are higher and that Lumberton, Texas home you love is no longer for sale because someone else was brave enough to buy it when you were still sitting on the fence.
Want more information on home sales in Southeast Texas? Contact me on the blog. Look for the contact button in the upper right column. Let me help you find a great home at a great price while everyone else is waiting on the right opportunity to come along.