NWMLS Report – Waiting for a Sign

The Norwest Multiple Listing Service issued its report on November 6, 2008, giving the state of the market.  Here’s a summary.

• Sales off. October’s pending sales fell more than 27 percent from the same month a year ago, and dropped nearly 26 percent from September. All counties reported double-digit drops.
• Buyers in stays. A unique and historic combination of events has frozen many buyers. The daily roller-coaster of events in the financial sector this past month has understandably caused a high degree of uncertainty with buyers and sellers alike.
• Stock market turmoil. Others pointed to the stock market turmoil and misperceptions about the availability of mortgage loans as restraints on activity.
• Listings slow. Listing activity also slowed during October. The total was the smallest number added to inventory since December 2007.
• Prices lower. Prices followed the downturn. For closed sales of single family homes and condominiums combined, the median price system-wide went down 7.4 percent from a year ago and down 1.3 percent from Sept. 2008.
• A good time to buy for some. Despite market volatility and shaky consumer confidence it’s important to understand that advantageous market conditions currently exist for:
  • first time buyers,
  • move up buyers, and
  • investors.
• Interests rates favorable. Interest rates are at historic lows for conforming and FHA loans and a variety of great mortgage options are available,
• Waiting for a sign. The public is waiting for a sign that all is going to be okay. NWMLS leaders agreed consumer confidence will take time to rebuild, but are optimistic.