Single family residences (SFR) sales (detached homes) are down about 10% for the first six months of 2011 as compared to 2010. The bright spot is that both the average and median sales prices are showing nominal increases (3-4% margin), and are selling slightly faster in 2011 than in 2010.
Private sales (non short sale, non bank-owned) are up over 9% from 2010, but the overall decrease quoted above is heavily impacted by an almost 21% DECREASE in bank-owned home sales. The bank-owned sales are also selling for 6-10% less for average and median sales prices compared to 2010 and those that are selling are going about 5-6% faster than last year.
It appears to me that sellers who WANT to sell and have not been under pressure to sell may have tired of waiting for the market to improve. I know that I have had conversations with consumers that have another home, and while they can continue to make payments on both, are deciding to make the move to their next destination. Sometimes it’s for retirement, other times to be closer to family. Those of us that work with banks to sell foreclosed upon properties have definitely recognized that the supply has decreased.
Condo sales seem to be increasing in both average and median sales prices, and they are generally selling faster than last year’s pace, too. There is a 10% increase in bank-owned condo sales, but the short sales are down by over 26%. I’m not sure if that’s a sign of frustration with the short sale process (and it can be VERY frustrating), or if there are more ‘strategic defaults’ in that group of property owners.
The Real Estate market continues to change. If you’re considering either a purchase or a sale, make sure you work with a full-time Real Estate professional that is watching trends and market dynamics.
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