Market update at glance July 31st 2012
Dichotomy of the market place ----- my best description for our market so far this year.
The positive numbers in all categories at the end of July can only be described in superlatives, closed sales up 18%, pending sales up 43%, inventory down 34%, time on market down 14%, single family permits issued by the City of Billings up 77%, number of rental available down 17%, interest rate on a 30 year fixed rate 3.55% down 21.9% from a year ago, monthly payment to purchase the average priced home in Yellowstone County down 22% from five years ago, the payment to purchase a home less than renting a home. Now for the dichotomy, price movement. While positive, up about 2.5% from a year ago, considering demand from an economic stand point, with the type of demand features noted above, you would expect a larger price movement. So the question becomes why? I believe the most logical explanation is to look at the our market as part of the larger Whole of the United States, when viewed from this perspective the Yellowstone county performance makes more sense, Nationally the housing market is stabilizing and most probably bottoming, its performance casts a fairly large shadow on people’s perception of the overall direction and makes decisions more cautious, not a bad thing, yet it does then affect how strongly pricing responds. My other comment is when a market reaches bottom, which in Yellowstone County was 2011; the gains shown as demand rises are usually outsized so you would expect some large sales gains, like noted above, as you start your recovery. If the market performs as it has in the past we should now be on an upslope which should last somewhere in the five to eight year range.
Market update at glance |
Year |
Percentage Increase |
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Yellowstone County |
07/31/2012 |
2011 |
2012 |
or -Decrease |
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Residential Closed Sales Units |
961 |
1132 |
18% |
||||
Residential Pending Sales Units |
237 |
340 |
43% |
||||
Residential Active Property For Sale |
963 |
633 |
-34% |
||||
Average sales price Single family Home |
$207,970 |
$215,584 |
4% |
||||
Average Square feet Single family Home |
2392 |
2418 |
1% |
||||
Median sales price Single family Home |
$184,000 |
$193,900 |
5% |
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Median Square feet Single family Home |
2217 |
2315 |
4% |
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Average Days on Market Till Offer Received |
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Single Family Home |
73 |
63 |
-14% |
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Absorption rate - |
TIME IN DAYS |
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Time it would take for all existing |
133 |
||||||
properties to sell with no new inventory |
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coming into the market place - residential |
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SINGLE FAMILY PERMITS MONTH |
16 |
33 |
106% |
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SINGLE FAMILY PERMITS YEAR |
111 |
196 |
77% |
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Average # Rentals Advertised Sundays |
335 |
279 |
-17% |
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Average Asking Price Rental Home |
$1,061 |
$1,034 |
-3% |
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Average Asking Price Rental Apartment |
$657 |
$672 |
2% |
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