Referencing historical data for the West Volusia Association of Realtors Sales and Inventory data, the Mid-Florida Regional MLS shows some very telling and disappointing stats for our area. To summarize, showing the 5 year history of home prices for the month of JANUARY:
JANUARY 2005 HOMES SOLD: 205, AVG LIST PRICE: $157,234, AVG SOLD PRICE: $153,162
JANUARY 2006 HOMES SOLD: 200, AVG LIST PRICE: $238,023, AVG SOLD PRICE: $229,799
JANUARY 2007 HOMES SOLD: 161, AVG LIST PRICE: $235,761, AVG SOLD PRICE: $225,669
JANUARY 2008 HOMES SOLD: 70, AVG LIST PRICE: $187,828, AVG SOLD PRICE: $177,833
JANUARY 2009 HOMES SOLD: 101, AVG LIST PRICE: $134,438, AVG SOLD PRICE: $124,456
While the bump in sales in January 09 over January 08 is a welcome improvement, the sales are in direct corelation to the amount of foreclosures that have been sold. As indicated by the continued decline in the Average sold price, pressure continues to put pressure on prices as the inventory of foreclosures continues to grow.
Friday, February 27, 2009
Current real estate market conditions
Some of you have asked our opinion on the current real estate market. So here goes…
For the immediate future we see a continued decline in home prices in most US markets. The market in Canada remains good but is showing signs of weakening. In the areas hardest hit (NV, FL, CA, AZ ) the worst seems to be behind us. Sales are picking up, due in a large part to huge price adjustments. In some markets prices have rolled back to around 1999 levels. With low interest rates, these homes are affordable and often payments are less than rental rates. These markets still have many over-priced homes and bank owned homes, and numerous owners are facing foreclosure. New programs targeted at keeping people in their homes along with buyers snapping up the good deals (steals) on REOs, helps to stabilize these markets.
In areas that were not hit so hard over the past few years (most of the other states), we are seeing a significant drop in sales volume but not so much in the way of price declines. This is most likely due to a lack of buyer confidence. The bleak picture presented in the daily news is taking its toll. Once consumer confidence improves the recovery can begin
For the immediate future we see a continued decline in home prices in most US markets. The market in Canada remains good but is showing signs of weakening. In the areas hardest hit (NV, FL, CA, AZ ) the worst seems to be behind us. Sales are picking up, due in a large part to huge price adjustments. In some markets prices have rolled back to around 1999 levels. With low interest rates, these homes are affordable and often payments are less than rental rates. These markets still have many over-priced homes and bank owned homes, and numerous owners are facing foreclosure. New programs targeted at keeping people in their homes along with buyers snapping up the good deals (steals) on REOs, helps to stabilize these markets.
In areas that were not hit so hard over the past few years (most of the other states), we are seeing a significant drop in sales volume but not so much in the way of price declines. This is most likely due to a lack of buyer confidence. The bleak picture presented in the daily news is taking its toll. Once consumer confidence improves the recovery can begin
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