More than just the temperature is rising in Southeast Texas. The residential housing market shows several significant upward trends in May. With data just released from the Beaumont Board of Realtors and Mid-County Board of Realtors here's the latest developments in residential real estate market:
Home sale prices are up!
Beaumont home prices continue to rise. Last May the average sales price was $146,600. This May the average sales price was $165,600.
Days on the market is up!
Its taking a little longer for those homes to sell. Right now the average number of days a home stays on the market in Beaumont is 123. In Mid-County sellers are averaging 132 days or about 5 months from the time they list their home until the time it sells.
Months supply of inventory is up!
In May of 2007, Beaumont has 5.4 months supply of homes for sale. The months supply of inventory is the most commonly used statistic to determine if an area has an excess of homes for sale or a shortage of homes for sale. Six months supply is often considered the perfect balance where buyers and sellers both have the same opportunity. When there is a shortage of homes on the market, then sellers can increase prices and buyers have to compete for the best homes. When there is an excess of homes for sale the opposite happens. Buyers have more control over home prices because there is an abundance of homes to choose from. So back to 2007, Beaumont had a 5.4 month supply. Sellers market! May 2008, there was a 7.4 months supply of homes available which tipped the balance toward buyers. Here in May 2009, the number of available homes is up to 8.0 months supply. This would make you think prices aren't going to be able to keep going up much longer unless the supply of homes start to decrease.
First-time home buyer home purchases are up!
On a national level, first-time home buyers account for 40% of the May home sales. I can't remember where I read that. Now here in Southeast Texas, we don't track first-time home buyer sales. But I can say we have a lot of first-time home buyers interested in taking advantage of the first-time home buyer tax credit. Who wouldn't be interested in getting a check for $8,000? *You've only got until November 30th to take advantage of it.
What should you do?
If you are planning to buy or sell,this is an interesting market. Prices are going up but overall sales are going down. Its important to have a local real estate expert help you with the best negotiation strategy. It will save you thousands. Need an expert? Call me today.
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