We have started a new year and it’s a great time to compare 2011 to 2010. In our market we sold 9 fewer homes in 2011 compared to 2010 (3999 vs. 3990). The average price of the homes sold was 2% higher than the previous year. 2011 average sales price was $125,697. Total sales volume was up 1.8%. None of these statistics sound very exciting but I am pleased with the direction of the market. Our market has improved and there are other items that bode well for the future.
Shadow inventory, as mentioned in previous Market Watches is the total of homes 90 days or more delinquent, homes currently in foreclosure and homes banks already own but that have not yet been listed for sale. Two years ago this inventory was estimated at 2.4 million homes, nationwide. The current estimate is that there are about half as many or about 1.2 million homes. Although 1.2 million is more than anyone wishes, the reduction from the previous year is very positive. A reduction in these foreclosed homes helps price appreciation, and as these homes are liquidated, demand for new home construction increases. New home construction provides a significant boost to employment which also helps the economy. Assuming no big hiccups this year, shadow inventory will be back to near normal levels a year from now.
Listed inventory levels also improved this past year. Our average month’s supply of homes averaged 8.71 months for 2011. 2009 and 2010 averaged 9.4 months. Reduced inventory, both nationally and locally, stabilized, or slightly increasing prices, and exceedingly low interest rates bode well for the future. I anticipate continued slow improvement to our market in 2012 and more improvement in 2013.
We have recently enhanced our TuckerOpenHouses.com website. You can now search for virtually all open houses in one spot and from your smart phone. You can also sign up for open house alerts and even map your open house schedule all in one convenient spot.
Best wishes for a prosperous new year and please let me know if I can help you sign up to automatically receive information about open houses or new listings from our website.