Sales fell slightly, year over year (comparing January 2011 to 2012): from 211 to 197. Although distressed sales are not a huge part of our market, they do remain higher than is really healthy. In January 2011 they comprised 43.4% of the market; by this January, that number had dropped to 36.7%. The good news for sellers is that the median home price has increased from $318,500 to $346,000. This was the single biggest jump since June, 2006, when the median price increased 12.9% over the same month in 2005.
New home starts are understandably poor in this kind of market. In fact, 2011 was the worst year on record for new home starts: Just 293 permits were issued countywide. That amounted to a 31.7 drop from 2010, and 77% below the annual average of 1291 permits since 1990. This has had a negative effect on economic growth in the county, since constructing a new home generates an enormous amount of economic activity and hiring.
The word is that 2012 will begin to provide some clarity on trends, and we may see a firming up of the somewhat flabby recovery we're experiencing. Here's hoping that is correct!
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