MARKET CONDITION REPORT INLAND EMPIRE - WEST END August 2007
THIS YEAR LAST YEAR
Year to Date Sales
This Year | Last Year | Change | % Change |
3,217 | 4,917 | -34.6% |
The market is remaining rather constant relative to last year varying by a few percentage points either way. Last report was -35.3 %. This is generally in line with other areas surveyed. There are markets performing at a lower level than Inland Empire-West (Victor Valley -51%), but there is also Santa Barbara at +6%. This implies the current market condition varies according to area and price class. Note from the History of Median Sales Price the market peaked in terms of price in the late spring-early summer of 2006. MARKET QUICK LOOK
Indicator | Comment - Current Position and Movement | Buyer | Seller | Neutral |
| DEMAND | Increasing moderately-slower for CONDO. No trend. | - | - | |
| SUPPLY | Rising slowly-near peak. | - | - | |
| PERCENT SELLING (Market Efficiency) | Increased 2 points-too small to be meaningful. No trend. | - | - | |
| DAYS ON MARKET | Steady. | - | - | |
| MONTHS SUPPLY | Declining slowly-movement favorable to seller. No trend. | - | - | |
| 60 DAY ABSORB (Market Speed) | Very small positive movement. Not meaningful. | - | - | |
| PRICES | List, Ask, Close Price-off moderately. Negative trend. | - | - | |
| FUTURE PRICE INDICATOR | Expect declines to limit of $450K for SFR and $329K for CONDO. | - | - |
In terms of current position the market is clearly favorable to the buyer. In terms of movement the market is moving toward the seller. However, this movement is very slight and tentative. No clear trends are evident except a tendency to declining prices (see graph History of Median Sales Price).
MCR TIP The 60 DAY ABSORB RATE measures market speed. Another way to think about the ABSORB RATE is the rate that listings are converted to closings in a 60 day period. The higher the ABSORB RATE, the quicker this conversion is occurring and the more the market is moving toward the seller. The opposite is true.
WORDS OF WISDOM Effective leadership is not about making speeches or being liked; leadership is defined by results not attributes (Peter Drucker).
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