- May 5, 2024
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Signs of a sellers' market continue as distressed properties decline as a percentage of all sales. September home sales were up only 5% over last September, but the total value of those sales was up 27.9% over the same period. The median selling price rose 22.9%.
The increase indicates a slight rise in home values as well as a change in the selling mix. Distressed properties (short sales and lender-owned sales) represented only 38.5% of single-family home sales, a significant drop from the 50% level that has prevailed for two years.
Single-family home sales during the third quarter rose from 456 to 509 (11.6%) from one year ago. Total sales rose 17.4%. It was the best third-quarter total sales number since 2007.
Most significant is the decline in distressed sales. Sales and prices are up. Agents and brokers are telling me about bidding wars. The local market has entered its slow period, but the positive momentum persists. I expect the momentum to accelerate during the spring selling season.
Another sign that the market is headed into positive territory is lot sales; they're up. Most lot buyers are not long-term investors. They are either builders or individuals with plans to begin construction soon.
Building permits are also up over a year ago. It seems that the dam burst once the impact fee discussion was over at the county and school district. Seventeen single-family home permits have been issued this month through the 23rd. Only eight were issued in the entire month of October last year.
Year to date: Every measure is positive or neutral.
The total number of single-family homes sold through the first three quarters of 2012 (1,550) is up 25.5% from the same period last year.
The median selling price is exactly the same: $120,000.
Days on Market (the time between the listing date and the contract being posted as "pending") has dropped from 132 days to 61.5 days.
In 2011, short sales represented 28.9% of all single-family home sales. In 2012, the percentage had dropped to 22.8%.
In 2011, lender-owned sale represented 23.7% of all single-family home sales. In 2012, the percentage has held about even at 24.4%.
In 2011, cash sales represented 53.4% of all single-family home sales. In 2012, the percentage has held steady at 52.6%.
Buyers seem to have become weary of short sales. They take a long time, and the result of an executed contract is uncertain because the bank's decision cannot be predicted. As buyers see potential properties being snatched up quickly, they are less likely to wait months for a short sale approval, preferring to purchase a lender-owned home or one with no special conditions.
