Wednesday, February 15, 2012

Vacant Home Sales by Month - January 2012

I normally post quite a few charts each month in an attempt to keep tabs on the level of distressed activity in the marketplace.  I look at new listings owned by the banks, short sale activity, percentages of sales by types of owner, etc. etc.  But for simplicity’s sake, I’m going to tone it down a bit – let’s take a look at just one measurement:  vacancies.

It doesn’t matter whether the homes are owned by banks, or they’re being sold short, or they’re owned by investors; fewer vacant homes and more occupied homes makes for a more ‘recovered’ market.

So, with that in mind, let’s see what’s going on.  Here’s a chart showing the number of homes sold each month, broken out by occupancy. (click to enlarge).

Forget all the talk about inventory shortages, rising prices, low interest rates, etc.  When those two lines converge & switch places, we’ll be on the road to recovery.  Let’s keep our eyes on them.

-Chris Butterworth