Strong Market for September 2009 Homes, Townhomes & Condos!
Our local real estate market seems to be finding its legs, as Sept 2009 showed strong sales results. Keep in mind that as prices decrease, we see more buyers coming to the table with offers. Some sales are even coming in higher than list price, as buyers are competing with several buyers to purchase the same property. Today’s buyers need to be ready to quickly write an offer when they see the right property come on the market at the right price. Bank owned properties are three times as fast to sell as other properties which sell. Also, on average for September, the bank owned properties are selling for only 2.7% under list price, compared to 11.4% off for all of the reported sales.
Recent history of sales, typically show the sales (quantity) tapering down starting around Aug, and continuing downward through December. This year we are seeing a different market. We had a high bump in June and an off month in the heat of July, but Aug and Sept sales are stronger than even our busy Spring 2009. You may recall me pointing out in July, that we had a huge spike in the number of pending properties. I think in Aug and Sept, we saw many of those pending properties finally come to the closing table. Median Sold Price (the best indicator for price trends) is somewhat stabilizing, as shown in the chart above. Looking at the 6 month moving average, we are actually seeing a slight increasing trend in median price.
Will Prices Decrease?
Should be interesting to see. Some stabilization is occurring in the median prices of properties which are selling. However, with so many listings expiring and new listings coming on the market at prices well above prices of those which are selling, I think those prices will eventually come down, either by the current seller getting realistic with the amounts buyers are willing to pay, or the lenders taking back the properties, then lowering prices down to market price.
With 118 sales in Sept, with average Days on Market of 320 days, and inventory being at 3284, I’d say we still have too much overpriced property, and that in the future, we can continue to see bank owned properties coming on the market at very competitive prices.
The sales data in my report is primarily compiled from Emerald Coast Association of Realtors and thought to be reliable, but not guaranteed.
Murray Balkcom, GRI, Realtor
Coldwell Banker United, Realtors — Seagrove Beach, FL