Below you’ll find two charts comparing residential sales statistics for the 2nd quarter of this year to the 2nd quarter of last year. Like I mentioned in my recent June report, the average sale price has dropped dramatically this quarter compared to this time last year, and this is largely due to an abnormal increase in low-priced sales. Let me quote the explanation I gave in my June report:
“From January to December of 2010 we had a total of 207 residential sales in the price range of $1 – $49,999. From January to June 30th of 2011, we have already had 208 sales in that same price range, meaning we’re on track to have TWICE as many sales in the lowest price range as last year. (Last year 9% of the total sales were in this price range, and so far this year 18% of the total sales are in this price range.) That, my friends, will certainly bring prices down for the year.”
In that same report, I also briefly discussed the drop in total number of sales and why this doesn’t concern me, at least not at this time. June 2010 was the deadline to close on a home to receive the first-time homebuyer tax credit. While the number of sales was up for June last year, that number dropped off for July and August, which are typically two very strong months. This year, we don’t have a tax credit inflating numbers. That means that while the number of sales is down for this quarter compared to last year, we will in all likelihood have a much stronger 3rd quarter than last year and hopefully it will be enough to even out or even surpass last year’s numbers.
As you can see, the inventory of homes on the market in Champaign County has stayed greater than 2,000 all quarter, and this fact has made it tough for homeowners trying to sell. There’s simply a ton of competition out there, so pricing your home right and having it in the very best showing condition are vitally important. On the other hand, the numbers provide plenty of evidence that homes are selling and buyers are buying. It’s a tough market, but not an impossible one to work with 🙂
*Information is deemed reliable but not guaranteed to be accurate.