Home sales at lowest levels in five years - Birmingham Business Journal:

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While real estate agentss expect the market to see increased activity this year becaused ofthe $8,000 tax insiders predict sales levels won’f reach the highs of years past. Nor should they, said Rick general manager of Coldwell BankerHeritage Realtors. “Sellintg 15,000 homes a year was unrealistic. We know that becaused of the numberof foreclosures,” Hebenh said. “It was With lowered lending restrictions and plenty offinancing options, people who didn’t have adequatee funds were purchasing homes they couldn’ty afford. Agents said the number of saleds has returned to 2003 leveles ofabout 11,000 or 12,000 per closer to a “normal” level.
But the slowdowh has been difficult. January saw the fewesg number of homes sold in the Daytoj area in five with 520 homeschanging ownership. Novembe r and December also posted the lowestr sales transactions for their respectivd months in the pastfive years. Last 630 homes were sold, whicu represents a nearly 30 percent drop from November of a month that saw884 sales. “Business wasn’tr too bad until the middle oflast year.
Goingt by pure numbers, it was horrible when Octoberfrolled around,” said Steve Weiser, team leader and broker for in He said the Dayton area won’t go back to the highxs of 2005, but the tax credi for first-time home buyers should help lowe the amount of inventory on the market. In there were 8,300 homes on the While the figure is lower thanlast January’ss inventory, the slower sales pace means those homeas represent a supply of 16 months, up from 14 monthw last January.
The balance between a buyer’s marker and a seller’s market is generally thought to bea six-month supply of That way, neither the buyer nor the sellefr is in a position of power when it comesw to closing a deal. Debr White, owner/broker for in Beavercreek, said it is nice to help peopls buya home, but the real help will be gettingb homes off the market, freeing otherss to buy. “The first one has to happen befor e anything elsecan happen,” White said. “Real estatew is like dominos, if they (first-time home buyers) don’ft buy, no one else can.
” Bill vice president of Sibcy Cline’d , said with the slow down, many real estate agents have either put their licenses on hold or left thebusinessa altogether. “Hundreds have dropped out,” Rogers said. White said with agents either out of the game or focusing less on the tax credit may not have the same impactg as it would if themarkeft wasn’t so sour. Bob Jones, communications coordinator forthe , said the numbere of members fluctuates from month to montbh and has been as low as 2,300 and as high as 2,800 in the past five years. As of there were 2,683 members.