Marin Heat Index
Here is that realtor's write-up of what it means to him (minus the speculative stuff):
It's nice to see a Marin realtor actually call it the way it is.
Recently, Marin real estate experts have been saying that our local market is again becoming a Sellers Market. This is not true.
In recent days new sellers have entered the market in large numbers, while buyer activity levels have dropped. The Marin real estate market has made a very sudden and very sharp course adjustment. The Marin Market HEAT Index (MMHI)has declined by 21% in just eight days. It now stands at 0.76. This MMHI level indicates a Buyers not a Balanced, and certainly not a Sellers Market.
In eight days:
- The MMHI has declined from 0.96 to 0.76;
- The number of available homes for sale rose by 14%;
- The number of homes in contract to be sold declined by 9%; and
- The number of closed sales declined by 2%.
Simply put, this means the number of sellers is increasing, while buyer purchases are declining.
And then there is this gem (referring to the report (warning - PDF) that indicates an increase in new-home sales):
Let me get this straight: Mortgage and interest rates are on the rise. Household finances are also being pinched by record gasoline prices. Yet somehow, Americans have all of a sudden decided to go out and buy a whole slew of new homes?...
[Why? It's because of price reductions.]
...What does this mean? While demand for new homes may be up, this is clearly turning into a buyer's market.
So if you're in the market to purchase a new home, wait. If you show some patience, chances are home sellers will be putting their properties in the discount bin.