As we start the fourth and final quarter of 2011, let's see how home sales this year compare to home sales last year. Raise your hand if you think sales are up. Now, take a look at the chart.
If your hand is down then you are right about home sales. So far through the third quarter the total number of residential sales is lower than it was in 2010.
"There have been approximately 10% fewer homes sold this year compared to the same time last year."
In fact only two months -January and September- of 2011 had a higher number of home sales than 2010. According to the data the The Real Estate Center at Texas A&M gathers from the Beaumont MLS, there is currently a 12.3 month supply of inventory on the market.
The number of homes for sale in Southeast Texas - also know as the amount of inventory- has been above 8 months since April 2009. Its been in double digits since Feb. 2010. Most experts would agree a 6-8 month supply of homes on the market is a fair and balanced market. More than that tips the scale to the side of buyers. Less than that tips the scale to the side of sellers.
Interestingly enough the median sales price has not gone down even though inventory is up.
- September 2010 Median Sales Price = $121,000
- September 2011 Median Sales Price = $123,800
What is the take away from all of this? To put it in plain words, the market is complicated right now. Fewer homes are selling but the pristine ones still are selling and selling at close to asking price.
- For buyers: Don't assume every seller will come down 10% off their asking price. There's more to it that than. You need to know how well the home is priced to begin with.
- For sellers: Plan to get your home in great shape before it goes on the market. Coldwell Banker Southern Homes has a free home enhancement guide that will help you maximize your sales price and shorten your time on the market.
If you have more questions about the Southeast Texas residential housing market contact me. Having a professional, local REALTOR on your side is one of the smartest decisions you will make when it comes to buying or selling a home.
It is a common occurrence. Home sales slow in September. This year is no different, except they slowed more than they have the past several years.
The chart below shows the top five areas for single family home sales in Southeast Texas for the month of September.
Here's a few September's gone by:
- 2010 = 124 home sales
- 2009 = 146 home sales
- 2006 = 228 home sales
See that! That's a 50% reduction in the number of homes that sold in September 2006 to September 2011. If you read much about real estate then you are aware 2006 is considered the peak of the market. I wonder if we will look back in a few years and call 2011 the bottom of the real estate market.
One other thing to take note of is that the average days a home spends on the market in Southeast Texas is 121. If you are thinking about selling your home you will want to keep that in mind. 4 months is the average.
If you want to know more about the Southeast Texas real estate market or single family home sales in Beaumont, Texas contact me. Its easy. Call, text, or click the link on the blog. If I don't know the answer to your real estate question I will do my best to find out.
The Real Estate Center at Texas A&M tracks home sales across the state of Texas. Here's a graph they just released that shows sales activity by market area.
Sales of single family homes were up 24% according to the data from the Real Estate Center. Good news for Texas. Not so good news for Beaumont.
Three markets across Texas that had fewer sales in August 2011 than they did in August 2010 were:
- Beaumont - down 8%
- Port Arthur - down 5%
- South Padre Island - down 7%
Beaumont also has one of the highest months supply of inventory which is also another sign that the sales are not what they should be. One interesting note, the median price is 6% from the same time last year.
What's it going to take to get the Southeast Texas housing market back on track? Share your thoughts here on the blog. Let us know what you think.