Tuesday, September 05, 2006

More on the listings report...

Like I said in my previous post, I thought there was something up with the new construction listing numbers that entered contract last month.

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.

This is what I posted late last week. Well looking closer at these figures I noticed that 20 of the 24 listings were sold in one particular subdivisions. 9 of these listings hit 'under contract' status on the same day and all of them are scheduled to close escrow on the same day (9/15). My take is that an investor gobbled all of these up. If I am right I'll bet the final closing price would be for much less than the $153 a sqare foot asking price was.

I wish this was a sign of a turnaround in the market (to the positive) but I'm having a hard time believing that only this builder is having success while the rest of the new construction homes just sit there. Had to have been some kind of deal with an investor. All of the homes are on the same street.

Plus if I look again I notice that 5 listings offered by the same agent and builder hit the market on 8/28 and took contract on 8/31 and are scheduled to close on 12/31 of this year. Of course I'll follow up when the properties close. I really hope that my feelings on this are wrong, I hope this is a sign of good things to come.

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