Thursday, August 9, 2012

Statistics Show Rebound

August is here!  Unbelievable how fast the summer goes.  This is the month where tourists flock to the island in search of the perfect beach day, a wonderful meal at their favorite restaurant (Outermost Inn is mine) or just a chance to relax. 

Residential sales in July totaled 26 in number, a jump from 17 in July 2011 but down from 29 sales in June 2012.  The median sales price in July 2012 is $562,500 ($509,500 in July 2011 and $661,250 in June 2012) and the average sales price was $827,036 ($787,203 in July 2011 and $1,079,241 in June 2012).  The average days on market is 274 (241 days last July and 198 days in June 2012).  The July 2012 numbers indicate a stronger market in comparison to July of 2011 while the month to month numbers indicate a weaker market. 

Since a month to month comparison of statistics or even comparing same period this year to same period last year show a sharp difference, I think it best to take a YTD(year to date) look at the numbers.  For YTD 2011, there were 200 sales with an average price of $912,361 and a median price of $551,250.  In comparison, for the same period 2012, there were 265 sales with an average price of $890,599 and a median price of $505,000.  So even though the number of residential units sold are up YTD (a 33% increase), the average price is down 2% and the median price is down 8%.         

National and Massachusetts statistics are showing a rebound in real estate values and # of sales. Interest rates continue to be historically low.  I hope that these trends will help fuel our island market and buyers will be enticed to take advantage of the current market conditions.

Enjoy the rest of your summer and here’s hoping (fingers crossed) that a buyer for your property is in the near future.  As always, thank you for your trust and patience in what I do.

All the best...and with a smile.

Doug Reece

Tuesday, May 15, 2012

Doug's May Market Update!


For the first time in a couple of years we have been enjoying a wonderful spring season on the island.  Although a little dry, the spring weather brought colorful blooms that have been extraordinary.

There were 31 sales in April 2012 compared to 24 sales last month.  Seven of these reported 31 sales were foreclosure related (about 23%), down from 30% last month.  All indicators tell us we have about 12 -24 more months of a real estate market partially driven by distressed sellers.

The average sales price in April was $896,290 (up from $578,887 in March) shows there were a few more high end sales in April but the median price was $493,000 (down slightly from $530,000 in March).  The average days on market are up about 10% to 225 days.

There are currently 49 properties “under contract” (up 14% from last month) that indicate an increase in closings over the next 1-2 months. 

As stated in last month’s update, consumer confidence in the economy is increasing and that is evidenced by an increase in the number of showings.  Banks are starting to “loosen” the purse strings and mortgage requirements are not as stringent as in the recent past.  With interest rates still hovering around 4% or less, a strong summer selling season is hopeful.

Thursday, March 8, 2012

Doug's March Market Update

I write this month from the RE/MAX international convention in Las Vegas Nevada. Although the weather is warm and sunny, I am spending my time in class and viewing new products in the “market place”. Since I am not a gambler, the casino is just something I walk through on my way to events.

There is good news being reported at the conference.

1. The GNP (gross national product) the indicator that tracts consumer spending is up over the past 18 months. Consumer’s spending of money means they have confidence in the economy.
2. Unemployment is down and thus more consumers are spending money and housing is on their radar.
3. The recent recession is over and tracking back 40 years to 1972, after each recession there has been a recovery in the real estate market (regarding number of units sold)

These are all positive indicators to support the reports that 2012 will an “up year” in regards to the number of properties sold.

Locally, the numbers for February support this prediction. In February 2012 there were 41 sales on island. The average sales price was $1,084,786, the median price was $520,000 and the average days on market are 267. The only “negative” here is that there were 12 bank foreclosures included in the 41 sales. I am not sure why there are so many bank related sales this month but we are definitely on the downside of the pinnacle of bank foreclosures numbers.

Interest rates continue to be historically low which should help fuel the market this year.

Tuesday, February 21, 2012

Doug's February Monthly Marketing Report

The numbers for January 2012 are stellar and hopefully a sign of good things for 2012. There were 37 residential sales in January with an average price of $1,023,999 and a median price of $748,900. The average days on market are 208. These are all positive signs. In January 2011, we saw 27 transactions with a median price of $650,000 and 218 days on market.

There have been 16 transactions so far in February with 9 days to go, so I suspect we will see about 25-27 total closings for this month.

There are presently 42 homes “under contract” across the island which tells me the number of closings over the next 60 days will be down from that of January, however there seems to be a good number of “real” buyers around this winter season.

All economic indicators, both national and local, are pointing to an “up year” regarding real estate sales. Nationally the trend is for increased sales but steady to slightly declining prices. I hope that the January figures mentioned above indicate we will see the increase in number of sales but that we will contradict the national trend and also see an increase in prices. Keeping my fingers crossed on that point!

Interest rates are holding steady as expected (at historic lows) and the upcoming presidential election should help to keep a stable (or better) market.

Tuesday, January 10, 2012

January New Letter

Doug's wrap up of 2011 and looking forward to the new year.
One of my favorite quotes for the New Year is: “Many people look forward to the New Year for a new start of old habits”…author unknown.

I wish you a wonderful and healthy 2012 where you attain your goals and as Oprah Winfrey once said, “Cheers to a New Year and another chance for us to get it right”.

Here are the “year end” numbers for 2011 compared to those of 2010 and 2009:

2011 2010 2009
# of residential sales 299 335 254
Average price $971,588 $1,083,745 $981,711
Median Price $575,000 $621,250 $557,500
Days on market 231 297 294

# of land sales 54 46 39
Average Price $770,867 $633,000 $508,000
Median Price $342,500 $380,000 $363,000
Days on market 261 420 455

# of condominiums 14 16 14
Average price $502,469 $425,331 $497,214
Median Price $501,250 $429,000 $367,500
Days on Market 170 376 302

The 2011 residential numbers show an 11% drop in # of sales, a 10% drop in average sales price, a 7% drop in median price and a 22% drop in number of days on market.

The 2011 land sales show positive signs in all categories. Yeah! Some good news for a change.

The 2011 condo sales have actually remained fairly constant over the 3 years. This is also good news.

These numbers are fairly consistent with what is expected as the real estate market will typically fluctuate once the “bottom” is reached. It appears that we reached the bottom of the market in 2009, saw a little reprieve in 2010 and then the current dip in 2011. This fluctuation is expected to continue for another 3 +/- years.

The New Year also brings a time to review the current market value of your property. I will be in contact with you soon to discuss your property and to review a current CMA.

All the best for the New Year.