The State of the Market – May 2007

For the month of May we really saw a shifting of markets throughout most of the areas, with slight upticks in Floyd County, Dublin and Radford.  Overall, however, there was a 27% adjustment in the market as a whole.  I wrote last month that volume activity in the New River Valley was actually up, and I think we’re finally starting to see a good example of that here with this report.   We’ve more inventory on the market and the average absorption rate – currently 7.62 months – is higher than in years past, while volume sales are up as well, although not at the same pace.  Again, anything over 5 months is typically a buyers’ market, and anything less than 5 months is typically a seller’s market. Graph

Area Active    Sold      Absorption Rate    Buyer/Seller Market 
Blacksburg 205 60 3.42 Months Seller
Christiansburg 307 50 6.14 Months Buyer
Montgomery County 70 9 7.78 Months Buyer
Floyd County 93 6 15.50 Months Buyer
Giles County 40 7 5.71 Months Buyer & Seller
Pulaski 132 14 9.43 Months Buyer
Dublin 127 23 5.52 Months Buyer & Seller
Radford 89 12 7.42 Months Buyer

Reiterating what I said in last month’s report, i don’t see significant moves upwards here in the NRV until 2008, but 2007 has been strong (insert shameless plug here – NRVLiving was the May Sales Team of the month here at CBT) and we expect that to continue.  Strong sales don’t always equal less time on the market for sellers though, as there’s more competition to adjust to.  Still, feel free to call me and my team at (540) 552-6500 or email me if you’d like more specific data, or to discuss opportunities that might be right for your situation!

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