Prior to the release of the April sales numbers I thought it might be interesting to take a look at more of the numbers and see if people are still moving and to try and see if the market really has dropped or because of the credit crunch has the market just shifted a little. Here is what I found in looking at the first quarter of 2008 vs the same period 2007. These numbers are for Montgomery County.
Total unit sales of single family residences and townhomes/condos for the first three months of 2008 vs 2007 were down 18.5%. Big number right? Not so fast. Single family residence and townhomes/condo rentals for the same period were up 8.5% At this point we are left with a year-to-year decline of about 10%. But, and I do not have access to these numbers, rumor has it that apartment rentals are up at least that much if not more. And let's remember that the foreclosure rate in Texas is up only about 11% from the previous year and not 65% as advertised so blatantly on CNN today.
Conclusion? That the demand for housing in some form is still present. Is home ownership a problem for those with less than stellar credit? Yes. Can this problem be fixed? In many cases yes. More on that at a later date. Is real estate still a good year to year investment? Yes especially if you are an investor and thinking of purchasing homes for rental income.
Once again I have to tell you please do not believe all that you read in the national media. Montgomery County, Texas is still a great market. It is still a vibrant market with a ton of opportunities available. It is a good time to sell and buy.
See you later.
Ron
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