These August sales numbers for Indian River County don’t make sense, or do they?

I’m a numbers guy. You can look at a set of numbers and cut right through all the crap that’s being reported by the media or companies trying to pad their sales for personal gain, right?  Maybe.  Give two different economist the same set of numbers and they can and will interpret them completely different.

The thing is some basic macro economics will always apply.  Supply and demand:  If supply is low and demand is high prices go up.  If supply is high and demand is low, like the crash a few years ago, prices fall.  My Economics professor at The University of Florida, Dr. Winslow, would be so proud of me right now.  But what does it mean when total inventory decreases and the median price increases?  That should mean that demand has increased. However, Days on the market have increased 33% to 79 days from 59 days and we only have 4.2 months of supply.  Better said; if no new listings come on the market we will have no homes for sales in 4.2 months.  For this past August new listings (supply) decreased 16.2% from last august and it took longer to sell.

My take – The demand isn’t as high as we hear or perceive, prices have not increased enough for people to get above water from the crash. Therefore not listing , sellers are pricing their homes to high trying to take advantage of the low inventory and buyers aren’t having it or a combination of all 3.

How’s that for an interpretation of our local Real Estate Market. To see the full report click here

“How does an Economist get off a deserted Island? …….. He assumes he has a boat.”   That’s Finance Humor!

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