August home sales
Baltimore-area home sales in August were up year-over-year for the third straight month, Metropolitan Regional Information Systems said today. The increase was about 5 percent in the metro area, while average sale prices dropped 7 percent.
August's average -- about $295,000 -- is $14,000 lower than what sellers got four years earlier.
"Your mileage may vary" warning: Some sellers who bought at the peak are seeing a much bigger loss of value. An average is just an average, and it also doesn't account for the homes that are sitting on the market unsold.
That unsold group added up to about 18,700 homes last month. That's down 10 percent from a year earlier -- good news for sellers -- but more than double what it was at the peak of the buying craze in 2005.
Sales, meanwhile, are down 54 percent from the level set in August 2005.
On the upside, pending deals that buyers and sellers agreed to last month rose 25 percent from a year ago. I sense a mad rush to close by Nov. 30, when the $8,000 tax credit for first-time buyers is supposed to expire.
More on this in tomorrow's story. Stay tuned.
What are you noticing about the housing market nowadays?
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Comments
is there a distinction made among these closings (I really hate to use the term sales) that distinguishes private party from REO?
Posted by: MrRational | September 10, 2009 5:39 PM
I wish there were, but alas, no -- not on MRIS's website stats. Now, someone with full access to the multiple-listing service should be able to run the numbers and come up with an answer, if I understand the system correctly.
Any agents out there want to answer MrRational's question?
Posted by: Jamie Smith Hopkins | September 10, 2009 8:16 PM
We'll see what happens when this credit expires here in a few months. These numbers are pretty manufactured. I wouldn't mind seeing that program extended or even expanded here shortly, but I just don't see it happening.
Interesting thought that just hit me, and I may be playing Captain Obvious over here, but I was thinking about the decrease in prices with increases in sales. I think the main, but not he only, driver behind that is the fact that the increase in sales is first time home buyers buying substantially less expensive houses that is really dragging average price down. We are comparing these numbers to last year, before the $8K credit. Therefore, the average prices are being pulled down by first timers buying below that magic $250k mark. Regardless, my opinion is that prices have pretty much stabilized and will maintain this level for a little bit before rising again. Let the comments begin!
Posted by: M | September 11, 2009 8:19 AM
Hi, M -- I've struggled to sort through what's happening for most homeowners because some conflicting trends are at work. One is the issue you mention -- more homes are selling in lower price ranges. Another is that some number of people aren't selling because they'd have to drop their prices more to do so.
Another challenge, analysis-wise, is this: How many of the homes selling for less than $250,000 would have sold in higher price ranges a few years ago?
Posted by: Jamie Smith Hopkins | September 11, 2009 8:26 AM
What I really like about this story is that it feels positive!
The equalibrium the markets' been striving for is near at hand.
Posted by: Pat Komiske | September 11, 2009 9:05 AM
@ Pat
"The equalibrium (sic) the markets' been striving for is near at hand."
Thanks for the laugh Pat; the equilibrium is not even close. Any activity you are seeing right now is skewed by the $8K credit (subsidy) and continued bad lending practices by FHA which don't require the buyer to have significant skin in the game.
If your personally banking on a recovery or "equalibrium (sic)" I would recommend considering plan B. Good luck either way.
Posted by: Bubblemore | September 13, 2009 7:11 PM