July 17, 2008
We find ourselves at mid year and I have just compiled a market report for June for our office. Though this is hardly the place to post all of the findings, here are just a few of the numbers and we're seeing:
1) The good news is that marketing time is down from the same year to date in 2007. In '07 homes spent an average of 99 days on the market compared to 89 days in '08. Marketing time is a great barometer of just how motivated seller have become as there is a direct correlation between time on the market and the sales price. In times like these, the closer a property is to market value, the more drama and energy it creates generating more showings and ultimately expedites negotions and contracts
2) The average sales price is just under $150,000 ($149,694), Compared to June of last this marks a $10,000+ decrease as the average sales price was $138,700 in 2007. The meat of the market continues to be in the $120,000 to under $180,000 with that swath of price points constituting 54% of the sales volume
3) Total house sales in June were $19M vis a vis last year's volume of $32M. Simple math shows a 40% decline in this statistic.
People often ask, "When do you think things will get better?" My answer to that question is, "when the inventory is reduced by at least half." The fact is that we have 1227 homes for sale in our service area. A healthy, balanced market will have about 500 properties vying for consumer attention.