How's the Market?
A favorite question that can be hard to answer. It really depends on the community (real estate too, is local) and the weather (our warm winter season brings). Here is one look that covers our specialty market of mid-century modern over the last three years. The straight lines are approximations of very complex curves but they do show the 3-year trend.
In this graph, solid lines represent the average home sale price on the left hand scale, and dotted lines, the number of sales per month.
First, the foreclosures (Blue lines), show their number of sales per month have been dropping, as banks have reduced the number on the market. The relative shortage has increased sale prices slightly.
Short Sales (Purple lines), where the banks allow underwater sellers to get out without foreclosures, have slightly increased, while the average price has slightly decreased.
Regular Sales (Red lines) show increasing number of sales, with a decline in average prices over the last three years.
Overall (Green Lines) shows an increase in average price and an increasing number of sales. Statistics get a bit funny here, because the totals are the addition of the numbers of sales but the average is the averaging of all home prices. What it shows is that the overall dollar volumes are increasing even though some prices may be lower, because more homes are being sold.
While this looks good for Buyers, Sellers should not despair because we get a spike in sales at the beginning of every year. More important, actual sale prices are determined by sales in the recent past, where we have seen some localized improvements, and not by long-term trends.