Monday, August 13, 2012

Good Deals - August 2012 - Summit County Colorado Real Estate Deals

I have been featuring short sales, foreclosures, bank owned, and motivated sellers for many months now.  The number of properties in this search continue to dwindle as time wears on, indicating that the distressed properties in Summit are being absorbed into the inventory. 

August 2012 Good Deals

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Summit County Colorado Real Estate Statistics - August 2012

Real Estate Statistics

June numbers drop back to April levels.

Pending properties increase by 40% over last month.

June 2012 had a total of 85 residential improved transactions, with a total dollar volume of $47.5 million.

Dollar volume for all types of property was $52.1M in June, down from May’s $68.5M – a decrease of 24% month over month. June 2012 total dollar volume was off by 21% from June 2011 which was $65.7M. May’s increase over April of 22% in dollar volume was effectively wiped out with June’s decrease of 24%. Number of transactions also dropped from 108 to 85, a decrease of 21%.

July 2012 residential sales from our MLS indicate 96 residential properties sold with dollar volume at $46.9 million – very similar to the MLS report from June. Expect official July numbers to be very similar to June’s numbers above. Out of the 96 properties sold, 52 were priced under $400,000.

June’s strongest price point was the $200,000-$300,000 price range with 16 total sales. The $300,000-$400,000 price point had 14 sales and the $400,000-$500,000 and the $600,000-$700,000 sectors both had 10 sales. Under $200,000 had 9 sales and $500,000-$600,000 had 7 sales. This month saw a return back to the popularity of the lower price points.

Average prices from 2006 to 2011 are as follows; 2012 numbers are year to date averages through June 2012:

Single Family Homes:

2006 - $737,253

2007 - $798,889

2008 - $835,803

2009 - $905,030

2010 - $770,797

2011 - $734,262

2012 - $715,457

Multi Family:

2006 - $333,501

2007 - $406,529

2008 - $463,633

2009 - $398,051

2010 - $425,080

2011 - $367,280

2012 - $366,838

Vacant Land:

2006 - $311,951

2007 - $391,587

2008 - $470,260

2009 - $399,025

2010 - $336,625

2011 - $246,478

2012 - $283,283

As of August 10, 2012, there are 1,572 active residential listings in Summit County, up 32 from early July. The total dollar value of current inventory is $1.062 billion. Both listing inventory and dollar volume remain stable from July to August. This is the second month in 2012 that inventory has reached the billion dollar mark. As of the same date there are 436 land listings, up 21 from last month.

With respect to residential listings, average days on the market is 375; median days on the market is 229 – again, the numbers remain steady from last month.

Our MLS is showing 229 residential properties currently Pending, up from 188 last month, with a total dollar volume of $129.2 million. This is an increase from July’s $92.25 million of 40%.

Year to date (YTD) Gross Volume is down 7% from YTD 2011. We are pacing above 2009 and comparable to 2010’s dollar volume at 6 months into 2012. Transactions are up YTD 3% from 2011 and are the highest since 2008 with 612 transactions.

According to Summit County assessor data there are 25,660 residential properties and 2,564 pieces of vacant land. When looking at inventory for sale, 6.1% of residential properties are for sale and 17% of vacant land parcels are for sale. Industry experts say that a healthy market has less than 10% inventory.

Industry experts also say that more than 6 months of inventory is a sign of a weak or “buyers” market. With 85 residential properties selling in June and inventory of 1,572, it will take around 18.5 months to sell the entire residential inventory.

Below are the total dollar amounts of sales in June from 2004 to 2012:

June 2004 $111.7M

June 2005 $112.2M

June 2006 $162.7M

June 2007 $141.8M

June 2008 $92.5M

June 2009 $34.0M

June 2010 $83.8M

June 2011 $65.7M

June 2012 $52.1M

Total Dollar Volume for 2004-2011 is as follows:

2004 $1.12B

2005 $1.47B

2006 $1.63B

2007 $1.63B

2008 $1.06B

2009 $683M

2010 $698.4M

2011 $684.2M

The year 2006 had the most dollar volume totaling $1,637,874,800.

If you would like to see the statistics from Land Title that provides the source for this newsletter, here is a link:

What does all of this mean to you?

Last month I reported a strong May but June brought us back to April’s numbers. Pending sales in the MLS for August were up 40% so we can expect to see some increases in dollar volume and transactions and the end of the summer approaches and summer sales begin to close.

I am seeing well priced properties under the $400,000 mark, with at least two bedrooms (and a garage is helpful), moving better than others. The best properties under $250,000 sell within days, not months.

Buyers: If you are looking to buy, it is still a good time to take advantage of the price softening resulting from the recession; however, time is running out to grab these good deals. As I mentioned in the opening paragraph, the number of good deals (bank owned, foreclosure, short sales), are lessening, indicating that distressed properties are being sold leaving only market rate properties available to purchase. Second, prices are stabilizing, proven by the Summit County Assessor’s statistics. Click here for an article re: Summit County Real Estate Price Stabilization. Prices from July 1, 2010 to June 30, 2012 decreased by 5%. Previously, prices from July 1, 2009 to June 30, 2011 decreased 16% and prices from July 1, 2007 to June 30, 2009 decreased 26%.

Sellers: If you are a seller, you still must be competitive in your pricing and condition. While pricing is stabilizing, it isn’t increasing yet. If you are pegging your value based upon 2007 pricing, then as you can see, your value has declined an average of 37% from 2007 to 2011 with even a slight decline from 2011 to 2012. While each property type is different and some have suffered greater depreciation than others, a realistic outlook of your sale price and where your property sits in the marketplace, will be the key to being the next property sold. Absorption is 18.5 months for June so if your property is on the market, you have a one in 18.5 chance of selling each month.

As always, thank you to Land Title Guaranty Company and Brooke Roberts for these amazing statistics!