Winter is just around the corner and we have seen some blustery weather lately and below 0 degree temperatures. The single family home sales picture has improved a bit and according to the by-line, “The Chill is Gone”. In October single family sales improved moderately to 53 for the month, up from 49 last year. The graph at the right shows you the sales picture in October for the last four years.
The number of Single Family homes on the market is coming down nicely as sellers hunker down for the winter. As of the first week in November there were 726 homes for sale. This declining inventory and moderate sales for October has pushed the sales to listing ratio to 7% up from 6% in September. Don’t kid yourself though, we are still in the grips of a Buyers market and the sellers who sold this month have priced their homes accordingly.
The median sold price for single family homes in October 2011 was $296,500 and the average sold price was $327,545.
Bank Ordered Sales – A Telling Story
In 2008 and before it was uncommon for a bank sale to take place. In the recent past there were about 5 to 10 sales every year, no matter the state of the economy. In 2009 that started to change dramatically and bank sales climbed to over 30 that year. In 2010 there were 78 bank sales and so far this year there are already 78 bank sales. It is conceivable that there could be over 100 bank sales in 2011, a very telling story of a limping local economy.
What will the Winter Bring?
While the sales numbers were not that great in October, it was an improvement over last year and that is good news. Whenever you see an increase of sales in any month compared to the last, it is encouraging. The real story will unfold when we see how many single family sales happen in November and December of this year. The first week in November has been fairly active with 18 single family home sales already. If this activity continues we should have more than the 56 sales of 2010. We will probably finish up somewhere between 60 and 65 sales in November.
Those historic low interest rates continue to provide a great opportunity for first time home buyers and those who want to trade up to a newer or bigger home.