May dollar volume down 12.5% from April.
Number of transactions steady.
May 2011 had a total of 84 residential improved transactions, down 3 from 87 in April 2011. Total residential dollar volume in May was $48.7 down from $55.7 million in April, a 12.5% decrease. Total number of transactions in May for all types of real estate was 107, increasing by only one from April’s 106. June 2011 residential sales from our MLS indicate 69 residential properties sold with dollar volume at $35.9 million.
The price point with the most activity in May is the $200,000-$200,000 with 16 sales. In second place is the $300,000-$400,000 with 15 sales followed by the $400,000-$500,000 price point with 13 sales. Fourteen sales over $1 million sold in May – the same as in April..
Average prices from 2006 to 2010 are below; 2011 numbers reflect year to date.
Single Family Homes:
2006 - $737,253
2007 - $798,889
2008 - $835,803
2009 - $905,030
2010 - $770,797
2011 - $780,637 ($764,853-April, $710,227-March, $705,177-February)
Multi Family:
2006 - $333,501
2007 - $406,529
2008 - $463,633
2009 - $398,051
2010 - $425,080
2011 - $409,389 ($409,960-April, $401,769-March, $429,237-February)
Vacant Land:
2006 - $311,951
2007 - $391,587
2008 - $470,260
2009 - $399,025
2010 - $336,625
2011 - $261,997 ($285,563-April, $252,583-March, $185,923-February)
As of July 4, 2011, there are 1,825 residential properties for sale, up 235 or almost 15% from last month. June also saw a 15% increase in inventory, raising available inventory for the summer selling season. The total dollar value of current inventory is $1.28 billion. As of the same date there are 417 land listings, up 27 from last month.
With respect to residential listings, average days on the market is 244; median days on the market is 125. .
Our MLS is showing 129 residential properties currently Pending, up 4 from May. Total dollar volume of pending properties per list price is $64 million.
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, 7.1% of residential properties are for sale and 16.2% 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 84 residential properties selling in May and inventory of 1,825, it will take 21.7 months to sell the entire residential inventory. Now, while there might be less than 10% of properties for sale, the lack of buyers can make for a long holding time.
Below are the total dollar amounts of sales in May from 2004 to 2011:
May 2004 $88.2M
May 2005 $104.8M
May 2006 $137.1M
May 2007 $158.7M
May 2008 $95.6M
May 2009 $63.7M
May 2010 $63.0M
May 2011 $56.1M
May 2011 total dollar volume was lower than recorded since 2004. Since closings happen 30-60 days after contract, this indicates that March and April had fewer buyers purchasing properties in Summit.
Total Dollar Volume for 2004-2010 is as follows:
2004 $1.12B
2005 $1.47B
2006 $1.63B
2007 $1.63B
2008 $1.06B
2009 $683M
2010 $698.4M
The year 2006 had the most dollar volume totaling $1,637,874,800.
What does all of this mean to you?
May took a dip from April and June numbers don’t look too promising, showing a slow spring season for Summit County real estate.
Looking big picture at Summit County Real Estate, Summit has experienced great appreciation over the last 20 years. Recently, average prices have declined around 16%.
Sales volume is down 63% from the height of 2006. Sales are steady, but not noticeably increasing. With months of inventory close to two years, it is still a buyer’s market and depending on which neighborhood you want, it could be the perfect time to buy.
To the Sellers out there: Depending on the type of property you own, my advice may differ slightly. In no circumstances are you in the driver’s seat of getting the price you were told it was worth in 2007, but some property types and sectors are fairing better than others.
To the Buyers out there: You have been waiting patiently for the perfect deal haven’t you? Can you still get good deals? More summer inventory is providing more choices and more competition. Within a buyer’s market, you can find the right property for you for a price that we haven’t seen in years. Note that more competition exists in the under $400,000 market.
www.yourcastle.org
anakos@yourcastle.org
Amy Nakos, JD, GRI
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