August Real Estate Statistics Encouraging
The August real estate statistics are in and present a compelling story for buyers positioned to take advantage of the current market. Competitive prices, lower inventory, fewer days on the market and higher median prices are leading many “fence sitters” to get serious about purchasing a home.
While the number of closed sales (361) is down from previous months this year, it is an increase from the August 2008 figure of 320. Inventory is down substantially from this time last year; 1548 single family residential units compared to more than 2700 in August of 2008, a 42 percent decrease. Fewer available units on the market combined with the decrease in new listings coming available, produce an environment conducive to housing value appreciation which is what we are experiencing in various micro markets throughout Monterey County.
Median sale price [on average] went from $335,000 in August 2008 to $428,540 in August 2009 (based on average median price of all cities within Monterey County), an increase of nearly 28 percent. Average days on the market (county-wide) is hovering below 100, good news for homeowners listing their property for sale - especially considering the increases in median sale price throughout the county.
The data suggests a recovery in various aspects of the local housing economy. While it’s impossible to determine exactly where the market is going, dissemination of information on where we’ve been is critical for the informed buyer. Contact a local REALTOR® today to find out more on current housing opportunities you may be able to take advantage of.
(Data courtesy of MLSListings, Inc.)
|
August 2009 |
|||||||
|
City/Area |
New Listings |
Current Inventory |
Closed Sales |
Average DOM |
Average Sales Price |
Median Sales Price |
Total Sales Volume |
| Peninsula |
178 |
913 |
103 |
126.27 |
$669,086.91 |
$560,181.82 |
$88,297,958.00 |
| Salinas/N&S Monterey County |
300 |
635 |
258 |
82.4 |
$229,680.40 |
$218,200.00 |
$53,201,719.00 |
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September 18, 2009
While there may be signs of recovery elsewhere in the economy we are not out of the recession by a long shot. You stated that currently “Fewer available units on the market combined with the decrease in new listings coming available, produce an environment conducive to housing value appreciation which is what we are experiencing in various micro markets throughout Monterey County.” This may be a fact.
I have also read further that another wave of foreclosure is in the horizon: “It is estimated that by December 31st, there are 29 Billion (yes with a “B”) sub-prime mortgage loans that are due to adjust to their fully indexed rate. There is significant concern that there will be a whole new crop of loan defaults in the coming months. In addition, between 2010 and 2011, there is another 200 Billion sub-prime loans scheduled to adjust to their fully indexed rate.”
How this impacts our county in future foreclosure rates is to be determined. Appreciation is indeed micro and potentially unsustainable in the short term. As we get closer to the New Year, loan limits and tax credits will be reevaluated for extensions, HUD will introduce new appraisal conditions for FHA, jumbo loans will continue to carve out niche space for those who qualify and first time buyers will delight in the opportunity to buy. Just keep an eye on the fact that recovery will be in the stock market well before housing bounces back. I wonder what “normal” will really look like?
Galen Call
Galen Call
TreeHouse Mortgage Group
direct: 831.645.1164
galen@treehousemortgage.com
http://www.GalenCall.com