As you can see from the attached chart, the Current Market Index went backwards slightly from May levels. Inventory levels are dropping, but pending sales levels dropped slightly too, sending the CMI Index higher.
I ran some further calculations to put this market in perspective. Based upon April closed sales of 573 single family homes, and Condo closed sales of 223 in April, each month only 3.8% of the single family homes are selling, and only 2.5% of the condos are selling. This means that 96.2% of the single family homes are not selling each month, and 97.5% of the condos are not selling.
There is a market for those wishing to sell, but sellers must price their home at today’s market. Each seller is in line waiting to check out at the check-out counter, and only 3.8% are getting out each month. Sellers really need to decide if they want to check out or remain in line.
The good news is if more sellers priced where the 3.8% are pricing, that number would rise as we believe there are more buyers on the sidelines waiting until housing either becomes affordable for them, or until they have confidence it is fairly valued at today’s standards.
The Ellis Team at RE/MAX Realty Group in Fort Myers Florida long ago developed a system that accurately gauges market activity relative to Supply levels, and we deemd this index the Current Market Index. We developed this index because it helps tell the story of where we are today, not just where we’ve been with closed sales reports. The higher the CMI Index, the more supply we have relative to demand.
|June 14, 2007||Active||Pending||CMI|
|May 17, 2007||Active||Pending||CMI|
|April 15, 2007||Active||Pending||CMI|
|January 23, 2007||Active||Pending||CMI|
|November 27, 2006||Active||Pending||CMI|