May 2012 best month of 2012 so far!
Vacant land making a comeback.
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| Compliments of bighornrentals.com |
May 2012 had a total of 108 residential improved transactions, with a total dollar volume of $50.6 million.
Dollar volume for all types of property was $68.5M in May, up from April’s $52.7M. The month of May 2012 indicated a large increase from May 2011 with dollar volume up 22% (May 2011: $56,1M v. May 2012: $68,5M). Transactions in May 2012 were up 25% from May 2011 (May 2011: 107 v May 2012: 134).
June 2012 residential sales from our MLS indicate 90 residential properties sold with dollar volume at $45.9 million.
May’s strongest price point was the $400,000-$500,000 with 25 total sales which shows a marked change from previous months in 2012. Usually lower price points have the most volume. Other price points were $300-400K with 19 sales and under $200,000 with 16 sales.
Average prices from 2006 to 2011 are as follows; 2012 numbers are year to date averages through May 2012:
Single Family Homes:
2006 - $737,253
2007 - $798,889
2008 - $835,803
2009 - $905,030
2010 - $770,797
2011 - $734,262
2012 - $702,783
Multi Family:
2006 - $333,501
2007 - $406,529
2008 - $463,633
2009 - $398,051
2010 - $425,080
2011 - $367,280
2012 - $358,389
Vacant Land:
2006 - $311,951
2007 - $391,587
2008 - $470,260
2009 - $399,025
2010 - $336,625
2011 - $246,478
2012 - $282,593
As of July 2, 2012, there are 1,540 active residential listings in Summit County. The number continues to increase slowly as we approach mid summer. The total dollar value of current inventory is $1.056 billion. This is the first time in 2012 that inventory has reached the billion dollar mark. As of the same date there are 415 land listings, up 14 from last month.
We are seeing vacant land picking up with an average value increase of 15% and a median increase of 28% so far in 2012, over the year 2011. Signs of a vacant land recovery mean that the overall market is improving as people are ready and willing to build new construction.
With respect to residential listings, average days on the market is 373; median days on the market is 246.
Our MLS is showing 188 residential properties currently Pending with a total dollar volume of $92.25 million. Pending properties remain steady from last month.
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% of residential properties are for sale and 16% 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 108 residential properties selling in May and inventory of 1,540, it will take around 14.2 months to sell the entire residential inventory.
Below are the total dollar amounts of sales in March and April from 2004 to 2012:
May 2004 $88.2M
May 2005 $104.8M
May 2006 $137.1M
May 2007 $158.7M
May 2008 $95.7M
May 2009 $63.7M
May 2010 $63.0M
May 2011 $56.2M
May 2012 $68.5M (up 22% from 2011)
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:
http://www.ltgc.com/files/breckenridge-marketstats/MAY2012SUMMIT.pdf
What does all of this mean to you?
May has proven to be the best month so far in 2012 for dollar volume and number of transactions. With closings being 30-45 days from contract, this would mean that March and April were strong months for contracts which show signs of improvement for our real estate market.
With early season activity as proven by strong May numbers, it appears that summer is going to be an improvement since the recession. If you are interested in buying, we seem to climbing out of the bottom so it is a good time to take advantage of current pricing before demand brings prices up. If you are a seller, you will still need to be priced competitively within other inventory because buyers are sophisticated and educated and we still have an absorption time of around 14-15 months. That means that your property has a one in fifteen chance of selling each month.
As always, thank you to Land Title Guaranty Company and Brooke Roberts for these amazing statistics! http://www.ltgc.com/.
For more information on Summit County Colorado Real Estate and Market Conditions, or for specialized reports, please contact Amy Nakos, JD, GRI, anakos@yourcastle.org, 970-389-8388.
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