Saturday, August 16, 2014

Real Estate in the Greater St George Area

Real estate in the Greater St George area mid 2014 is "steady as she goes"!  The market seems to have adapted a steady state of ebb and flow as seen by this glimpse of the last two years of activity.
Rate of Sales - How Many Months to Sell Current Supply of Homes

The bars on this graph represent the amount of months it would take to sell the current inventory of homes on the market given the current rate of sales, if no new properties entered the market.  In other words, if we take away the "existing stream into the the lake, how long would it take for the lake to drain"?  This is also referred to as the absorption rate- how long it would take for those properties to be absorbed or sold or emptied.  We've gone from about 6 months last year, 2013, to 7 months this year, 2014.

I've added the two blue lines, drawn by myself to show how the market has evened out in its supply and demand fluctuation, taken year over year, as compared from June to July of 2013 to June to July of 2014.  If we assume that the lower the graph bars, the greater the demand in the market place (as indicated by a diminished supply), then there is a little less pent up demand this year as apposed to about this time last year.

My impression is that we've experienced a standard or average increase in price appreciation in our market last year.  If the June and July months of this year, over last, indicate anything, it would be that the demand has slightly reduced, given that the amount of supply on the market reflects this.  The increased 'time to sell the current inventory' is marginal, from about 5.3 to 6-7 months to sell existing inventory.  However, it reflects a slowing of the market somewhat, thus potential freezing or flat lining of price appreciation.

The conclusions are towards buyers being able to have slightly more product to look at on the market.  However, because the average days on the market, for homes that do sell, is about the same (114)), if not slightly less (106), buyers still need to be educated enough to act when the opportunity presents itself.  The average sales price of homes is about $230,000 for residential listings in the Greater St George area.  The average sold ratio is about 96.5% of list price.

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