2008 is here, and with it, more optimism in the housing market. Looking at the numbers for November and December of last year is not very fun. In December in Aurora, 62 detached single family homes sold out of 1,270 on the market. At that rate, this equates to roughly a 20 month supply of inventory on the market. Following this trend back might reveal that the months of November and December are the lowest point for the housing market in the last 20-30 years. No joke.
However, there is hope on the horizon. There was nearly a 18% reduction in inventory from November to December so there are currently less homes on the market than there were through 2007. The sub-prime fallout has likely somewhat passed and even though it’s not completely done, at least it’s not shockingly new anymore. While forecloures still comprise too much of our current market, the new government bail-outs and interest rate drops/freezes should help alleviate the situation.
For sellers who were weathering the market in 2007, this helps explain what happened towards the end of the year in terms of activity. Looking ahead to 2008, we see positive signs that indicates possibly a stronger market. While 2008 will not be a “good year” in relation to the 2004-2005 market, it will likely be a better market than 2007.