Monday, June 7, 2010

An Indication of Present Roanoke Market Conditions



Some charts were sent by our member Valeria but I am unable to post them on Blogger so here is the lowdown. You could assume the same thing is happening in the "Non MLS" market. Generally new listings for sale have dramatically increased and the sale of property has increased as well. However, it doesn't appear that sales have increased proportionally. We appear to be in slightly worse condition.

In January there were a total of 660 new listings but only 127 sales from LNF information. And the average sale price was 212K. And in May there were 1163 new listings and 1136 sales with an average sales price that dropped to 192K. So forget about your thoughts that we have hit the bottom because we're not there yet. And when we do hit the bottom I expect to see a long drought of one month a little better and one month a little worse before we start to pull back out of the hole.

The present unemployment rate in Roanoke City is 9.6. They consider around 3.5 to be 0 because there will always be people out there that either can't or just don't want to work. Salem's unemployment rate is 7.2. Roanoke Counties unemployment rate is 6.7. Virginia's average unemployment rate is 7.6 because we have towns like Martinsville sucking us down.

***Mark my words, until this job thing gets straightened out, and there has been plenty of time to allow for people to build up some reserves, we won't see the real estate market completely turn around. We will need an unemployment rate around 5% to "start" seeing some life in the market.

We are in a buyers market right now. NOW is the time to buy and acquire your wealth. You will also be doing a good deed. Buying up all of the houses in Roanoke will make it "look" like things are getting better even though the underlying cancer will not have been fixed. It's like some duct tape on a wound.

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