Real Estate Slump - Updated Statistics & Chart
In a previous post, I showed a chart in which I plotted my local real estate market absorption rate relative to a year earlier. When that ratio was over one, it meant that the market is bullish and below one meant that it’s bearish.
I updated the chart based on the new June 07 monthly statistics released by GCAAR, and also used Montgomery county MD single family home as a sample of my local market.
Two charts appear here. The smoothed version is in green, and the non-smoothed version is in light transparent blue.
The updated news doesn’t really show us any good indicators. The end of the chart is trending down, and what’s worse is that the previous trough started from June 05 and ended on Feb 07 (see the green smoothed chart). I hope that the trough isn’t that deep or it’s going to be disastrous to sellers specially those with ARMs as they won’t be able to sell at a price that covers their loan.
Technorati Tags: real estate, absorption, bullish, bearish
January 23rd, 2008 at 10:21 pm
[…] is an updated chart to the posts I had made earlier. At that time I was hoping that the curve pointing up is pointing to a recovering real […]