April has ended and is generally considered to be the start of the “selling season.” I know I would like to see the numbers go up. They are not pretty.
Here is where our local markets currently stand. Market data information is from the local WVMLS. Here is what is occurring in the city of Salem in real estate…
Average Sales price:
The average sales price for the month of April was $222,997. In April 2007 the average sales price was $238,719. This is a 6.5% drop from the same time last year. The average sales price is an increase over the first quarter of 2008 which had a $213,311 average price.
I think this increase in average price is offset by the increase in inventory. Sellers seem to be holding fairly firm on pricing which is why inventories are creeping up. Buyers just aren’t willing to pay that much for homes.
Salem has a current absorption rate of 130.5. This places the current Salem inventory at 12.0 months.
Home Sales Closed:
In April this year, 148 homes closed on the market. That is down 34 % from the same time frame last year when 225 homes closed in April. Inventories are creeping up. Being competitive is more getting more and more important.
New Home Construction:
Salem currently has 327 new construction homes active on the market. New home construction is currently averaging $358,583 for active listings. Homes are actually selling for an average of $296,301 and only 17 sold in the month of April.
The new construction sector is still suffering greatly. This will make it harder on resales that compete with the sector as builders will be forced to drop prices or offer significant incentives.
Salem currently has 111 condos listed as active on the MLS. They are averaging $164,042. 9 sold in the month of April with an average of $152,588.
Luxury Market ($500,000+):
Salem currently has 75 luxury homes listed on the local MLS. 2 sold in the month of April. The MLS average for active listings is $682,514 and the average sold price was $645,000.
The luxury market will continue to have long term problems until credit can be created for jumbo loans. The raised ceilings for Fannie and Freddie should help to ease some of these, but lenders are still trying to figure those out.
If you need more specific market information, please feel free to call or email me with your specific area, and I will provide you with a more detailed report.
(c) Copyright, 2008. Melina Tomson, All Rights Reserved. DO NOT COPY this without express written permission from the author.