Annual Sales Report (2006)

Gee, I'm finally getting to this in the second week of the second month of 2007. I have a series of three charts that I'm going to share with you with comments on each.

First the disclaimer...

Disclaimer... all data compiled for this report comes from the WARDEX Data Exchange and does not include any sales activity from outside that resource. All research is done only on single family homes and there is no inclusion of modular homes, commercial properties, or vacant land. The geographical area researched includes; all areas within the boundaries of the city of Kingman, north Kingman, the Hualapai Mountain area, and the Valle Vista subdivisions. Click here to see maps of the included area's.

As you will see below, a lesser number of SFR's sold in my research area than in the previous two years... yet sellers still managed to squeeze out a better average sale than in those years. The gain slowed somewhat but I was still surprised at the final number.

Here are the average sales price figures for the last three years...


As you can see the average sales price jumped up 17.4% from the previous year. If you compare the average value in 2004 to 2006 you will see a 52.6% gain. Wow...

Here is a look at the units sold...




Whoopsie... we lost 32% of the buyers we had in 2005 over the course of 2006. Gone are the great many of investor class buyers that we saw in 2004 and 2005. Gone also are the ultra liberal lending practices and the record low interest rates. Unfortunately I think the local buyers are now feeling the price pressure enough to stay out of the buying market until either prices start to come down to their level or until they can earn more money to afford a home at these prices.

Plenty of new residents move into the area all the time, but not enough to equal the kind of pressure on the market that we saw during the hot sellers market of 2004 and 2005. Clearly this is a buyers market and seller must do more to attract whatever buyers there may be out there lurking to buy a home. It is almost a broken record at this point since I've been saying much of the same things in my monthly sales reports.

Here is a look at the total dollar volume comparison...


In 2006 the total dollar volume dropped approximately 20% from the year before. I can confidently say that there are more SFR's in my research area today than there were in previous years because of many newly constructed homes. There are simply less sales and I believe that the current price point is the main culprit.

Storm clouds on the horizon unless some improvements are made to infrastructure around these parts. Making Kingman a convenient community would certainly help weather this storm that I am thinking of. I believe that people would rather pass on a home in a certain area of town because of the time it takes today to get to and from the neighborhood they would like to live in. This is one reason I believe the Kingman Crossing Interchange is vital to this community. It would open up different areas that would lead to more demand for property because of convenience.

Right now there aren't that many places in Kingman where someone would say, "I have to live there," where ever there is. We are not giving buyers an incentive to make a move on property and homes, so the buyers are responding by either not buying or settling on the lowest possible price. Settling on low prices or not buying bodes ill on a growing community like Kingman.

I don't like to make predictions but if I was pressed on a guess, if prices continue to go up less homes will sell. And if there are no real improvements made by the city then values will drop.

I'd prefer to see values hold steady and the sold units in 2007 gain on the 2005 number.

See you next year!!