Real Estate sales soared a whopping 46% in the last quarter from the prior quarter. At 107 total sales for the quarter (May-July, 2010) vs. 85 the prior quarter (Feb-Apr), it's another encouraging sign that the market may be heading toward recovery. While sales prices continued to dip (-4.43%), the average sales price compared to listed price was UP over 1/2%, which is significant.
While overall sales prices were down in the latest quarter vs. the earlier, the number of sales above $300k rose an astounding 36% (11 to 15), indicating that the upper price range inventory is moving again, partly as a result of the lower inventory reducing through the noted sales activity increase.
What's the bottom line you might ask; good question, look in your own crystal ball, I dropped mine in the parking lot several years ago...but the indicators would suggest that the gross average sales prices are driven downward due to a higher number of lower priced sales, not necessarily overall decline in value. There were more distressed properties that were offered and purchased in the REO market than the prior quarter.
The last indicator, number of homes sold over 300k is most encouraging, indicating that consumers are re-entering the marketplace, believing that prices have fallen as low (or close to) as they're going to.
For insight on a specific property or area, please contact me direct at phil.hopkins@pruaz.com
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