Daybreak home sales surged in the 2nd quarter 2015, with the number of homes sold increasing 40% to 147 sales. Even with this large increase in sales, median home sales prices remained static, standing at $297,000, a decrease of 1%. Homes also took longer to sell, taking a median of 43 days, an increase of 7.50%.
Given these results people may ask why prices have not increased on the back of strong sales. Well it all comes down to supply of demand. While home sales were strong, the supply of home listings both from resale homes and new construction also remained strong. This resulted in a plentiful supply of homes for buyers to choose from, limiting any upside price appreciation.
If we break sales down by home type the figure that really stands out in the sale of single family homes. The number of single family homes sold increased by 47.06% to exactly 100 homes.
Total Sales: 10 (+233%)
Median Price: $164,500
Price Change: +0.92%
Total Sales: 37 (+8.82%)
Median Price: $221,750
Price Change: -4.60%
Single Family Home Sales
Total Sales: 100 (+47.06%)
Median Sales: $328,500
Price Change: -6.01%
The latest absorption report shows that there are just 1.31 months of supply* (given the current number of homes listed this is how long it will take to sell them). Absorption report based on 2 months data (Total number of current listings (132) / (under contract home (95) + number of sold homes over the last 2 months (106) / 2)). 1.31 is a very low number and indicates a very tight inventory level, which should be good news for people wanting to sell their home quickly.
The original 2nd Quarter 2015 Daybreak Home Prices article was published on our Daybreak Blog.