I think the word I'm looking for is HELP!! Have we learned nothing?? This summer has been dead as a doornail but the asking prices, as you will see, continue to climb. I'll do a preliminary look at the sold data at the end of this report (and follow up with the official report in a couple of weeks) and you can tell me what you think.
Today total listings available for single family residence equals 785 (up from 768 at the start of August). 303 are new construction homes and 482 are existing homes on the market.
There were 168 new listings for the month of August (173 in July). 1 home has already closed and 11 have entered contracts. The average asking price for these new listings is $266,750 (up from what I thought was a more reasonable $248,605). The median asking price is $229,900 (up from $219,900).
55 new construction homes listed (average asking price of $283,772, median asking price $269,900). Zero of these have closed this month and 8 have entered into contract.
113 existing homes listed (average asking price $258,464, median asking price $209,900). 1 of these has already closed and 3 more have entered contract.
59 homes entered into contracts in the month of August (up from 48 in July). The average asking price for homes that received contracts was $227,619 (up from $212,516 in July) and the median asking price for July was $225,000 (up from $189,975 in July).
24 new construction homes entered into contract (average asking price $283,892, median asking price $289,900). All right, time out. The average asking price of a new construction home jumps -- in one month -- UP 28% and the median jumped 50%!! I'll be looking into these numbers a bit more. I'm going to guess that builders really were handing out deals last month. There may be huge discounts in price. Please remember that the figures shown here are based on the listed asking price, I won't know the final sales price until the transaction closes and is reported. But I assure you that I'll be on it.
35 existing homes entered into contract (average asking price $189,033, median asking price $169,900). Both of these number are down from last month 10%. That's right DOWN!!
When a listing enters into contract it is very probable that the transaction will close and property will change hands. From this report alone I am left scratching my head.
I'm guessing that builder are dropping their prices to enter into contract... I'm guessing. But then they turn around and ask for an increase (in average listing price) of 16% over last month. Maybe the builders are just having more success?? Again, I'll have to look into these numbers more closely as the sales figures for the month become final.
But there is no excuse for the existing home seller to be setting a higher average listing asking price. Even though it's only 2% higher than last month, the contracts entered into on existing homes FELL nearly 10%.
I am continually blown away at local MLS meetings on Wednesday mornings during the hotsheet report of how long it takes for everyone in attendance to list all of their price reductions. It literally takes longer to announce those price reductions than it does for the agents there to feature their new home listings. It wouldn't take so long if the price was set correctly based on the market in the first place.
My preliminary sales report for the month of August shows only 62 sales with an average sales price of $210,000 and a median price of $191,000. I'd say the path to success leads from reality and the new listing information hardly reminds me of reality.
I'll be running a report on price reductions when I get a chance. Maybe even this holiday weekend.
For now though, I'm on my way out to Las Vegas tonight for a concert. I'm getting too old for these kinds of events being it is a rock concert and all, however after doing this report I do need to bang my head and might as well do it at a concert.
See you all later and have a great and safe holiday weekend!!