Real Estate Market Statistics

A new feature on this blog is something you can look for on Mondays.  I’m posting it early this time, so that I can get the new statistics from May 31, 2010 to you to review as you browse the web on your computer this weekend.

The two reports you will receive are actually links to the RE/MAX Properties, Inc company blog (for which I am a featured blogger) because the raw data and charts are posted there for you.  I will give my interpretation of what I’m seeing so you will know when I think the market really is turning up and that better times are ahead for sellers.  For you buyers, that means you will want to know when prices are starting to go up.  Increases in prices are going to have a dramatic effect on the amount of home you can purchase for the money available to you and consequently affects your payment and down payment requirements.  Interest rates are not the only variable when you are trying to decide when the time is right to purchase a home or sell and move-up (or downsize).

Days Supply and Target Market Analysis

The two reports you will see are the RE/MAX Properties Days Supply and Target Market Analysis.  The Target Market Analysis is weekly information on changes in the number of listings and showings generated through RE/MAX Properties, Inc.  Since we have the largest market share in the Pikes Peak Region, our numbers reflect the market as a whole very well.  The second report you will find monthly is Days Supply.  This is a chart of different areas and price ranges and the changes in the rate of sales over the previous 4 months.  It reflects one point in time and shows you the number of homes that are on the market and have sold during the period.  From those numbers are calculated the number of days it would take to sell all homes currently available as if nothing new were coming on the market.  A negative number is an improvement and for May 31st, that number overall is -16.52%.  In the same period (07/01/09-10/31/09) prior to the last $8000 tax credit expiring (which it never really did) that number was -9.98%.  So we saw more than a 65% improvement with the latest tax credits than we did last year.  But remember, we have borrowed buyers from the future so that they could take advantage of the tax credit and I expect to see less improvement in coming months.  Our showing activity has decreased 48% since the top of the market the first week of April and listing activity has increased 7% since then.  Sellers need to be realistic in this market if you want to sell at all.  Those first to the party with the best price and condition will win because it will still be a buyers market for the foreseeable future.

Remember Mondays for new information

So check back here weekly for new Target Market Analysis information and monthly for the latest Days Supply numbers.  We want you to be on top of the market so that you can be an educated consumer when it comes to real estate.  We’re here when you need us.  We’ll put a light on the market for you.

Every week I provide sellers whose homes I have listed with information about trends in our local market so they can be up to speed on what’s going on.  The good news during March was that the number of listings flattened and the number of showings for our company is staying steady.  Sellers have to know this market is not easy and must have a hardy constitution to weather all the uncertainties if they really want to sell their home.  This is not a market to “try” to sell.  That commitment has to be made upfront.  But, with a leveling of listing activity and a 22% increase in sales in El Paso County for March 2009, there is a glimmer of a silver lining on all those clouds.

There are still a lot of foreclosures and short sales to wade through and many more coming, so any upward trend won’t happen quickly, but when it does come, it will be steady because that’s what our local market usually is - steady.  No flash and dash like 40% gains per year seen in Florida, just steady upticks in prices.  Distressed property sales are still more than 30% of the monthly sales for March and 94% of homes that sold were priced below $400,000, so El Paso County is becoming more affordable to more people.  With the $8000 tax credit for first time buyers (remember that also means people who haven’t owned a home in 3 years) and low interest rates, we are in the midst of a perfect storm.  What an opportunity!!!  There is increased activity in some areas of California and in Las Vegas, so we’ll just keep watching the trends and keep you informed.