According to the Orlando Regional Realtor Association's latest monthly report just published, last month (March 08) saw a fall in the number of homes for sale in their region !Could we be seeing the long awaited indicator telling us that we could be nearing the bottom of the recent sales decline and the 'tide is now turning' ?
Overall current inventory is of course still high, representing an 8.18% overall increase from March 2007 ; however the number of homes actually listed for sale in the Orlando region during March 2008 fell by 512 compared to the number listed for sale in February 2008.
Sales in March 2008 throughout Orlando increased by 13.56% from February 2008.
In March 2008 the report states that 2,398 homes were listed for sale in the MLS with 'pending sale contracts' and this is an increase from 1,731 pending sales in January 08 and 2,175 in February 08, a good sign !
With new home starts at a record level nationwide, inventory levels steadily declining and the pace of sales slowly increasing, we may possibly be heading towards a new home void at sometime in the future and there are some interesting demographics that are well worth noting in support of this.
The natural population growth of the USA creates an estimated 18 million new home requirement over the next 10 years and yet this target is falling way short !
According to latest statistics, (published April 08) currently an estimated 900,000 homes are being constructed per annum nationwide and the number of new homes being built is dwindling monthly !
The reduced number of new home permits issued monthly in the US is a further indicator for clearly demonstrates the new home requirement target is heading for an increased major short fall.
Only a rapid rise in new home construction can correct this and this seemingly will not occur until the new home builders sell their existing inventory.
This is now occurring for massive price reductions always do the trick ; we have new homes throughout the US from east to west coast, north to south where 40 to 50% off the original off plan price currently is available and sales are increasing due to 'bottom feeder investors' !
We believe US property prices will most certainly increase once the correction has finally taken place.
When will this be ? We do not know !
One thing is for certain though, supply and demand factors always create value and the current house sale pricing leaves no room for 'profit' something every business needs. New builders are indeed no exception are quick to raise prices when they feel confident they can !
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