Anyone else seeing increase in average price despite it all?

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• (August 31, 2009, 09:08:57 PM)

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[RebelBroker]

Hello All,

In my area, all the way up from city to county level, I am seeing increased average prices. Despite a huge inventory and lots more days to sell (over 90 on average), I am not seeing any drop in average price - the opposite in fact.

The increase has slowed from previous years (2004 - 2005 we had over 24% increase!), but it is still there.

I suspect that the number of buyers out there will slacken further with the fallout from the subprime lending situation and that may drag it down. I am just surprised prices have not nudged down yet.

R

[deu12000]

The prices are pretty much the same as last year over here.  The only difference is there aren't that many insanely priced houses like last year right now.  Most houses are priced decently, last year there were $250,000 houses priced at $450,000.  This year it looks like everyone is trying to price things right and get things sold.  A lot of agents are struggling for buyers, I've held steady though.

[settlesrealty]

You know I see an increase and decrease, pending on what side of the town I am at. North of where I am at it had a23% decrease but west of me we had a 15% increase.

Bettina

[RebelBroker]

In my local market, for the month of Mach we saw our first "significant" drop. But man, it does nt come close to the 23% you mention!

We had the average price drop by 4.7% in March. This is the first time we had a drop that was something you could actually feel. For the average home, that comes out to almost $50,000 less than last year.

We have many folks who bought last year and now find themselves in a place where they cannot sell for what they paid.

R

[Jim Erickson]

I personally do not like averages, but rather also look at median numbers. I believe the NAR uses medians for trend evaluations.

One thing I noticed in our area, is that builders have been aggressive in buyer's incentives as they try to reduce inventories. There has been a spike in average price sales due to the burst of sales of new homes, especially as they tend to be higher than the average median priced homes in the area.
 

[settlesrealty]

The huge change I notice where I am at is from the Builders. Real Estate Agents and buyers are being offered larger then normal incentives to help to move inventory and talking to some of my custom builders they are telling me that they are currently sitting on 24 month worth of inventory and that they are now in some areas stopping to build or slowing down construction.

Bettina

[RebelBroker]

I cannot offer any first hand knowledge of this.

However, my contractor has been telling me that many builders who started the process of getting new homes built started it when the market was roaring. It takes a REALLY long time to get the go-ahead in my part of California to get anything built.

In any event, the demand is just not there right now. I would suspect that the same thing is happening here with builders courting agents a bit more.

My area has really seen the market make its turn this year. March was the first month in which we saw a statistically significant drop in asking price - 4.7% which comes to over $45,000 less for the average priced home.

R

[David Pylyp]

The Toronto Canada market has been strong despite the sour news from south of the border. Condo sales are becoming a larger market segment than prior years.
Canada Mortgage and Housing released a 3 year forecast of their predictions and they are ( May 2007) predicting continued 5% annual appreciation but agree there is a softening demand. New home sales continue with 7 - 12 month waiting periods for completed product.

[RebelBroker]

Nationally, things seem a bit worse than they are in my little corner of the world. While we do have lots of inventory and few buyers, homes are still selling for more than they were a year ago.

I am not sure how long this can go on. The recent numbers show that the market is continuing to decline. The only real question is whether the changes will be slow and steady or drastic.

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