Homebuyers are scouring the market trying to find elusive bargains even though demand for all types of properties is on the rise and inventory levels are at an all time low. The market logic of under supply combined with strong demand continued to propel our local average housing price upward throughout the first quarter of 2010.
According to MLS statistics there were 51 sales of single family homes in Pelham during the first quarter of this year – a staggering 89% increase over the doldrums experienced during Jan- Mar. 2009 when only 27 transactions were recorded. The current sales level is also 28% ahead of the 2006-2008 average of 40 unit sales in the first quarter.
The current 12 month average price in Pelham now stands at $312,274 just a few dollars shy of the quarterly peak level of $312,314 recorded at year end 2007. The current figure represents a 5.2% increase over the first quarter 2009 total of $296,284 and is the highest level ever recorded in any previous first quarter in Pelham.
Perhaps the best indicator of the current health of the resale housing market is the statistics relating to the average time on the market for homes that have sold. During the first quarter of 2009 it took an average of 117 days on the market for a home to sell. The figure for January – March 2010 dropped to an average of 82 days. In 2008 the average time on the market was 71 days.
It is important to keep short term market comparison statistics in prospective. Yes we have experienced significant improvement over last year but this hardly surprising given the time of economic crisis that we are comparing to. Homes are still taking 11 days longer on average to sell than they were two years ago. The market is moving steadily along – but much more like the tortoise than the proverbial hare.
First Quarter Comparison Chart (Pelham):
Categories: Real Estate Market Update