Market Upadte at a glance july 2012

By
Real Estate Broker/Owner with Howard Sumner Real Estate RRE-BRO-LIC-2190

 

Market update at glance July 31st 2012

 

Dichotomy of the market place ----- my best description for our market so far this year.

 

The positive numbers in all categories at the end of July can only be described in superlatives,  closed sales up 18%, pending sales up 43%, inventory down 34%, time on market down 14%, single family permits issued by the City of Billings up 77%, number of rental available down 17%,  interest rate on a 30 year fixed rate 3.55% down 21.9% from a year ago, monthly payment to purchase the average priced home in Yellowstone  County down 22% from five years ago, the payment to purchase a home less than renting a home. Now for the dichotomy, price movement. While positive, up about 2.5% from a year ago, considering demand from an economic stand point, with the type of demand features noted above, you would expect a larger price movement. So the question becomes why? I believe the most logical explanation is to look at the our market as part of the larger Whole of the United States, when viewed from this perspective the Yellowstone county performance makes more sense, Nationally the housing market is stabilizing and most probably bottoming, its performance casts a fairly large shadow on people’s perception of the overall direction and makes decisions more cautious, not a bad thing, yet it does then affect how strongly pricing responds. My other comment is when a market reaches bottom, which in Yellowstone County was 2011; the gains shown as demand rises are usually outsized so you would expect some large sales gains, like noted above, as you start your recovery. If the market performs as it has in the past we should now be on an upslope which should last somewhere in the five to eight year range.

 

 

 

Market update at glance

 

Year

Percentage Increase

Yellowstone County 

07/31/2012

 

2011

2012

or -Decrease

               

Residential  Closed Sales Units

 

961

1132

 

18%

               

Residential  Pending Sales Units

 

237

340

 

43%

               

Residential  Active Property For Sale

963

633

 

-34%

               

Average sales price Single family Home

$207,970

$215,584

 

4%

               

Average Square feet Single family Home

2392

2418

 

1%

               

Median sales price Single family Home

$184,000

$193,900

 

5%

               

Median Square feet Single family Home

2217

2315

 

4%

               

Average Days on Market Till Offer Received

       

Single Family Home

   

73

63

 

-14%

               

Absorption rate -

TIME IN DAYS

       

Time it would take for all existing

   

133

   

properties to sell with no new inventory

       

coming into the market place - residential

       
               

SINGLE FAMILY PERMITS MONTH

16

33

 

106%

               

SINGLE FAMILY PERMITS YEAR

111

196

 

77%

               

Average # Rentals Advertised Sundays

335

279

 

-17%

               

Average Asking Price  Rental Home

$1,061

$1,034

 

-3%

               

Average Asking Price Rental Apartment

$657

$672

 

2%

 

 

 

 

 

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the man to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Location:
Montana Yellowstone County Billings
Groups:
Realtors®
Posts to Localism
Mortgages
Local Expert
Tags:
home sales
new construction
montana
real estate
realtor
howard sumner

Comments 1 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the flag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
966,681
Edward & Celia Maddox
We Take The High Road
Solutions Real Estate

Good market report with charts and all.  Good Luck in Montana sales.

August 11, 2012 08:12 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
264,711

Howard Sumner

Your Real Estate Source, Your Results Solution!!
How do You Determine the Best Value on Your Home?
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cloud to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information