No question about it, 2015 was a very good year for real estate sales along the Crystal Coast. This past year is yet another example of the ongoing trend of improving sales and inventory.
The chart above graph’s a 5 year trend of improving residential property sales. Sales have increased by 32 percent during that time period. What isn’t shown is the supply of inventory over that period. The Crystal Coast went from a 22 month supply of homes in 2010 down to an 11 month supply in 2015. This is great news for the home seller for it means less competition with sales at twice the rate.
And speaking of less competition, there are currently 9.5 percent less homes for sale than the same time last year with 10 percent fewer new listings coming on the market. The decrease of homes on market, decrease of new listings and the supply of homes (inventory) down to 11 months makes the Crystal Coast real estate market one of the best markets in almost a decade.
Another indicator of improvement is the ratio to sold and new on market. Just 5 years ago every time a home was sold four new listings came on market. We are currently at less than 2.5 new for each home sold.
A quick snapshot of 2015 shows that there were 4,372 listings with 2,947 of them coming on market for sale for the first time. Total homes sold was 1,722 with the average sold price at $243,000, a 7 percent increase over the year before. But that average sold price is somewhat deceptive. 65 percent of all homes sold in 2015 were price ranged from $250,000 and under with the bulk (52 percent) sold at under $200,000.
The method of paying for a Crystal Coast home is still very interesting. While 41 percent of home purchasers used a conventional loan, a whopping 25 percent of home buyers paid cash. 22 percent chose VA and 7 percent FHA.
The trend towards cash purchases has been consistent over the past few years. There are months in recent history where as much as 35 percent of all sales were paid for in cash.
While most people will fix on the number of sales and the sales price, the real factor to keep an eye on is the supply of inventory in a market or sometimes called the absorption rate. This is measurement of how long it will take to sell off a market place and is a good indicator of how long it will take to sell your property.
For example, in 2010 when the inventory was at 22 months, the idea was that if no new inventory came on the market for sale that it would take 22 months to sell everything available. Likewise for now it’s at 11 months. If no new inventory came on the market the theory is that it would take 11 months to sell all properties. This principle can be directly applied to an individual seller’s home. Each neighborhood has its own absorption rate. You can determine the possible length of time it would take to sell your home by factoring the number of sales with the rate of sales. It is a good rule of thumb to apply when selling and gives a realistic expectation of how long it will take to sell a specific property.
Keep this one thing in mind. We have a 5 year history of a steadily improving market place. 2016 is positioned to be the best year of them all!
Contact Margaret Hitchcock with Hitchcock Realty today for complete information and to find out what the absorption rate for your home would be!