Well, the first quarter of 2008 is behind us, and who would’ve thought we would be happy that the Tigers finally won their first game of the 2008 baseball season! Oh, and this also means that the first quarter of the 2008 real estate market is behind us as well!
From Big House Data:
Those properties that buyers have found attractive are typically great values. This means that
the convergence of price and quality has stood out in the mind of the buyer. Considering the
downward pressure we see on price these days, sellers need to be mindful of their asking price
for a number of reasons, not least of which is the appraiser. Anecdotally, more appraisals are
not coming in at the negotiated sales price.
With declining average list and sales prices, but an increase in the number of closing over the first quarter of 2007, there are two things that are immediately evident:
- Buyers are still out there, and actually, in greater numbers than last year;
- Properties that are selling are well priced and exude quality.
So, what do the numbers look like?
Average List Price – March 2008
The average list price for property in Washtenaw County was $248,601 in March. The average list price for the first quarter of 2008 was $246,066.
The March average list price is down around $7,000 compared to last month. This is a cyclical dip, as the chart shows. Every year, February has had a higher list price than March.
Average Sales Price – March 2008
The average sales price for property in Washtenaw County was $175,665 in March. The average sales price for the first quarter of 2008 was $206,574.
Compared to March 2007, the sales price is down by over 19%. In the three year being tracked on this chart, the Washtenaw County real estate market has not seen an average sales price this low in 3 years!
Number of Listings vs Sales – March 2008
Here’s a great graphical representation of what the Washtenaw County area real estate market has experienced for the last three years.
The upper set of lines are the listing on a monthly basis with a 12 month moving average trend line. The lower set of lines are the sales on a monthly basis with a 12 month moving average trend line.
As is evident, listings began to explode in 2006, and sales began to slow in late 2005. The good news on this chart are the trend lines, as they show the relative momentum of the listings and sales. Both trend lines are moving towards a more balanced market. Sales have picked up and listings have slowed down.