Last month turned in a better than expected performance. More units were sold in October of 2008 than in each October the previous two years. Without details it may have seemed that it was a good month for sellers, however once again more than half the closed sales last month were sold by banks holding non performing assets.
I'll let the data speak for itself... after 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.
Listings and sales in units chart:
The spreads between new listings and closed sales continue to get slightly better and certainly better than it was last year. Still... not a fine time to be a seller in this market. However, more REO properties (foreclosures) are on their way to the new listings category, I doubt we see these lines cross next year (not a real prediction, just a feeling).
Average listings and sales averages chart:
The spread here really need to close from the listing side down because I don't see the closed sales average increasing as more and more bank owned properties hit the market next year.
2005 through 2008 unit sales chart:
As you can see, production numbers are up as compared to the last two years. If 86 more units sell in the remaining two months, production will be higher than it was last year. The last two years might have the look of a 'bottom' in terms of production... I certainly hope so (but not holding my breath). Even if it is though, sort of a hollow victory given that production has relied on the sale of bank owned properties, especially the last three months.
2005 through 2008 average price chart:
And clearly, the bank owned properties that sold are 're'-setting the prices (there will be a comparison later). It is still a supply and demand issue now, and will be so going forward.
The average price of closed sales fell 27.9% compared to sales recorded in October of 2007.
2005 through 2008 median price chart:
The median sales price for closed transactions is off by 26% as compared to October of 2007.
The price range of sales for October 2008 is $43,900 through $417,000.
Average SFR statistics:
The average home sold in October had 3.04 bedrooms, 2.14 bathrooms, a 1.79 car garage, included 1,581 square feet of living space, and was built in 1994. The average hold sold for an average of $90 per square foot of living space.
It took an average of 108 days of marketing to attract a buyer to come to an agreement and a total of 153 days from the first day of marketing to the close of escrow.
Sellers reduced price $20,423 to attract a buyer on average from the first day of marketing, and conceded another $8,232 to the buyer in the transaction. The total average price concession for the homes sold in October was $28,655 (16.78% total reduction).
In terms of units sold, of the 57 sales reported for October -- 29 were listed as foreclosed on (51% of units sold).
The price range of foreclosed units sold for October was from $43,900 up to $250,900.
The average price of foreclosed units sold for October was $112,989 (20.5% lower than the overall October figure).
The median price of foreclosed units sold for October was $107,500.
The average foreclosure home sold in October had 3.03 bedrooms, 2.17 bathrooms, a 1.62 car garage, included 1,487 square feet of living space, and was built in 1994. The average home sold for $76 per square foot of living space. Owners of foreclosed on homes conceded 13.9% off the initial offering price.
Traditional sellers (I call them human sellers) averaged a sales price of $172,270 in October, or a price that was 52% higher than bank owned sellers. Traditional sellers received an average $102 dollars a square foot of living space compared to $76 dollars a square foot for bank owned sellers.
However, it also took traditional sellers more than twice the time to attract a buyer and close on their sale (68 days for a bank owned sale to attract a buyer and contract compared to 149 days for the traditional seller). More than three additional months of mortgage payments and other monthly costs associated with home ownership.
Bank owned properties are out producing traditional sellers and are using price to get it done. Traditional sellers with marketable property do not need to compete with bank owned properties on a dollar for dollar basis, however traditional sellers would be wise to out work other traditional sellers at this time. The work is not difficult, the price simply needs to be set to attract buyers... and buyers do exist... even in this market.
Until next time... happy selling (and buying!!)