That’s it! 2007 is in the bag! It certainly wasn’t a bad year for real estate; not as bad as people would make it out to be. Remember – real estate is local, so it’s important to remember what’s happening HERE locally, not necessarily what’s going on across the country. More than 50% of the country experienced a POSITIVE real estate market in 2007, including the New River Valley. Wait … let me add to that. The New River Valley has seen a positive real estate market for several years!
(We have a lot to be thankful for.)
Ah, the winter market. 17.71 months worth of inventory on the market for the month of December. Which, coincidentally, translates to a buyer’s market. Remember, we’re looking at how long it would take to sell the existing
residential inventory in a particular area, if nothing else came on the
market until supply was exhausted. Anything over 5 months is typically
a buyers’ market, and anything less than 5 months is typically a
seller’s market.
Nothing much to fear right now, though – this is typical for this time of year. The holidays typically slow things down, the majority of buyers are off doing other things and only viewing your home from their computer screen (which is why it’s important to be online!) but trust me – they’re viewing your home. Those buyers we’re working with that are ready to buy are already making plans with us on their timelines and when they need to be in their new home, so get ready … if history is any indication, you’ll start seeing traffic pick up substantially in another six weeks.
| Area | Active | Sold | Absorption Rate | Buyer/Seller Market |
|---|---|---|---|---|
| Blacksburg | 150 | 18 | 8.33 Months | Buyer |
| Christiansburg | 238 | 12 | 19.83 Months | Buyer |
| Montgomery County | 56 | 2 | 28 Months | Buyer |
| Floyd County | 69 | 4 | 17.25 Months | Buyer |
| Giles County | 96 | 8 | 12 Months | Buyer |
| Pulaski | 86 | 6 | 14.30 Months | Buyer |
| Dublin | 78 | 6 | 13 Months | Buyer |
| Radford | 58 | 2 | 29 Months | Buyer |
My prediction (which is worth nothing but we’ll see whether or not it comes true) – 2008 will be strong for buyers as inventories will remain slightly inflated, and loan rates will remain stable. Sellers will need to focus more than ever on setting their home apart, and they can do that by having the home ready to sell, and by maintaining an honest perspective of their market position. If they’ll do that, they will benefit from a ready, willing and able pool of buyers.