Yesterday Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness, released his monthly report for May. He started with:
Traditionally, May is one of the stronger months for resale housing activity.
Butler is right- the summer home selling season should be in full swing, but rush hour here isn’t looking much different than the middle of the night. At 5,220 recorded sales, home sales are down 24% year-over-year. Sales are not only off the frenzy of 2005, but significantly slower than any May in at least the past six years: [According to ARMLS, 6244 homes sold in May 2001- I don’t have data from previous years.]
According to Butler’s report:
It appears with 5,220 homes being recorded sold that traditional pattern is continuing. This activity is not far below March (5,385) and is an improvement over April (4,855), but below last years’ 6,870 sales and the 10,425 homes for May 2005. So far in 2007, a total of 24,265 homes have been recorded sold, in contrast to 30,830 for 2006 year to date and 46,485 sales for 2005 year to date.
Butler does a magnificent job of understating the price trend:
Much like the ever-increasing sales activity of the last few years, the rapid improvement in prices has disappeared.
With the median price dropping from $265,000 last year to $262,000 this year- a 1.1% decline, I suppose it’s fair to say that the rapid improvement has disappeared:
Butler stated of this year’s market:
The general expectation is that the 2007 resale housing market should be a good year, but no where near the records.
I have to wonder who’s general expectations are being met here- are they all candidates to replace Lereah?