April 2011 Sales Statistics - Tupelo Area, NE Mississippi
A quick compilation of residential housing sales numbers for the month of April 2011 are as follows:
Total Closed Sales: 114 (slight decrease from 118 one month prior, and down 13% compared to the same month one year ago)
Total Foreclosures Sold: 29 (compared to 34 the month prior)
Foreclosure/sales Ratio: 25% (Distressed property sales continue to be a significant percentage of total market sales however, trending slightly downward over the last three months. Does not reflect short sales.)
Average Sold Price: $116,887 compared to $106,284 one month earlier.
Median Sale Price: $105,250 increased from $89,500 one month earlier.
NEW! Listing Sales Breakdown: NEW!
$0 to $80,000 - 43
$80,001 to $150,000 - 41
$150,001 to $200,000 - 17
$200,001 to $250,000 - 7
$250,001 and up - 6
April 2011 March 2011
Average List/Sell Price Ratio - 92.72% 94.57%
(Original List/Sell Price Ratio) - 88.78% 89.38%
Average Days on Market (DOM) - 179 This is up from 147 last month and continues to trend higher from 123 in January.
Total Homes on Market (as of 5/1/2011) - 1,186
With 35 fewer MLS listings than this time last month, the actual estimated market holds an inventory of approximately 1,375 homes for sale. This number remains consistent when compared to one month earlier with a shift being seen towards non-MLS listed properties. This number also coincides with an increase of average DOM. Many sellers are driven to put their home on market during the spring as it is considered the best selling season.
The realization of an increase in Average Sold Price and Average Median Price for April can be the result of fewer foreclosure sales as an overall percentage of total sales. Price reductions are still occurring in our market and seems to be the driving force in sales once perceived market value has been breached. The slight deterioration of the Original List/Sell Price Ratio also supports the number of price reduction actions and apparently reflects a continued market value correction, in support of weak bottom locally. Once again, closer inspection of this number is suggested in order to determine whether this weakness is confined to a certain segment of the overall market.
This is the first month I have broken down sales numbers in price ranges as it shows where overall market strength is at. The high end home sales continue to be sluggish as a percentage of all homes sold. Overall, Buyer's remain in control of the selling side of our market. Our market is strained with similar sales hurdles as seen around the country and are not entirely the result of tougher lending policies. Consumer's confidence in the overall housing outlook remains cautious.
With one month remaining during the typical spring selling season, sales going forward will provide more insight to our market stability. As I mentioned last month, one good month does not spell a turnaround but 3 strong consecutive months may exude more positive feelings about jobs and the local economy. Sales continue to be driven by the factors of location, condition, and price. Buyers, although cautious, do recognize good pricing and overall value and continue picking up the "deals."
One key indicator with market stability is the absorption rate. This number shows the rate at which the inventory of homes for sale are being sold. A declining figure indicates the inventory is decreasing as more homes are being sold than are coming onto the market. A rising absorption rate implies that there are more homes coming onto the market than there are buyers willing to buy at the market prices. The current absorption rate of 15.25 continues to climb (four consecutive months) but remains under last April's (2010) number of 15.63 and somewhat mirrors the national trend.
Interest rates were actually very stable through the month varying little more than 1/4 of a point and are hovering around 4.87% for a 30 year fixed rate mortgage.
Homes purchased today with a long term investment outlook look very attractive with little downside risk as we head into the summer months. However, with looming inflation concerns, the consumer should remain tuned in to their needs, affordable housing, and purchase well within their means. "House poor" has become a common description of homebuyers who take on too much home by "maxing out" their eligibility and leaving little disposable income for everyday living expenses. Lenders are doing their best to prevent this with loan risk management. Rapid inflation can do real harm to disposable income as debt to income ratios can also change rapidly.
Numbers compiled from Northeast Mississippi Board of Realtor MLS statistics on 5/4/2011 and may be within a slight margin of error based on totals and timely reporting. This compilation does not include private or other sourced sales activity except for estimated total available homes for sale.
For more detailed information about our market or neighborhood specific reporting, please contact Randy Landis at EXIT Realty Premier, Tupelo. Randy is an Accredited Consultant in Real Estate®.