As you might have been hearing in news reports, the Real Estate Housing Market is showing positive signs. The truth is that the local market has been showing positive signs for the last couple of years. The best way to characterize these first three months of 2012 is . . . explosive! Let’s take a look:
1. The number of residential house closings (aka “sales”) has been well above last year for the same period each month. About 435 houses closed in Flagler County from January 2012 through March 2012 which is 50% above last year’s 289 for the same period.
The Number of House Closing By Month Comparing 2009 through March of 2012
As you can see, most years follow a similar trend in terms of the number of closings with this year being way above last year and the other prior two years. The one trend exception to note here is 2010 when the Home Buyer’s Tax Credit was expiring in June of that year. This caused volume to be “pushed up” to the earlier part of the year.
You can also look at this trend in one line and you see the overall trend moving upwards quite a bit.
2. But there are still a lot of houses for sale, right? Actually, no. The number of active house listings has been decreasing quite a bit every month locally and we are currently looking at 887 houses for sale for all of Flagler County and 642 for the Palm Coast area. The other great part about this is the significant decrease in the number of Short Sale house listings which is 164 for all of Flagler County and 145 for Palm Coast. Short Sales were typically accounting for around 36% of all houses for sale in the area.
3. Cash is still making up for the majority of house sales to the tune of 53% of all house closings through March of this year and the next biggest contributor being Conventional Loans at 28% of all house closings. Here’s a chart of the financing types for closings in the area from January 2012 through March 2012.
4. What about price? Median Price has been stabilizing and is showing signs of “inching” up. As I’ve said before, price is always dependent upon supply and demand mainly. With the number of houses available for sale (supply) decreasing and the number of closings (demand) increasing, we are seeing the positive impact on prices. Should we expect “explosive” gains in price? No, but we should begin seeing more normal value appreciations in general. Remember that individual house values are dependent a number of factors and feel free to contact me for a local free Comparable Market Analysis for your home. Here’s the Median Price Trend for house closings in the are from 2009 through March 2012:
Again, it’s been a great start to the year. There are still great deals available in the area. With interest rates at truly historical lows and current prices, owning just makes perfect sense. Give me a call today if you are thinking of buying or selling in the area.
Disclaimer: Information based upon the Flagler County Association of Realtors MLS as of 4/3/2012 for Residential Houses. Information may be deemed reliable, but is not guaranteed