How Healthy is Today’s Market? Pelham News Update

The local real estate market is sputtering its way into the 2011 home stretch. Total unit sales in November dropped slightly from last year’s level and year to date sales are 11.7% shy of  November 2010 results.

According to the MLS® sales reports of the Niagara Association of REALTORS® there were 9 single family unit sales in Pelham during the month November compared to 10 reported last year. Much of this represents the typical seasonal slow down when you consider that the October and September respective monthly totals were 17 and 31.

On an annual basis, however, the January to November sales figure of 171 units is identical to the tally reported in 2008 shortly after the collapse of theU.S.housing market and the ensuing global financial crisis. In comparison, the November 2010 year-to-date figure was 191 units and the 2009 total was 199.  The current 4-year average of 183 single family unit sales is 17% below the November 2007 peak level of 221 units.

Now don’t let these figures scurry you into a housing bubble New Year’s prediction. Our current activity levels are entirely consistent with the sales levels achieved during the earlier years of this millennium with an average of 190 units being the typical November year-to-date results reported between 2004 and 2006.

It is important to keep a long term prospective when analyzing the health of our local housing market. While activity levels have improved since 2008 the overall volume has dropped significantly since the heady days of 2006 and 2007.

Market conditions continue to be extremely price sensitive. The average time on the market for homes sold during November 2011 was 94days – significantly longer than the average of 41 days for those sold last November.

There have been 423 new listings placed on the market so far this year compared to 387 during the same time frame last year. The 12-month average price stands at $334,942 up 3.3% since the November 2010 figure of $324,095. Interestingly, this average price growth is slower than the 2010 increase of 6% over the November 2009 12-month average price of $305,709.

So how’s the market? In a nutshell – spurty – but on average, balanced and normal.

This article is part of our “Real Estate View”  Column Series published semi-monthly in the Pelham News, a Niagara area community newspaper.

Categories: Real Estate Industry, Real Estate Market Update

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