A review since January 1st indicates sales are much slower than predicted, new home sales have fallen off some however it was noted K-Hovnanian increased the model prices by 2% in January on (5) models. Indicators suggest:
Since January 1st 2016 only five (6) homes have gone on the market. The current active listings are 35. The average active inventory has been consistent at (34-37) since November. Price reductions on more than fourteen (14) active listings has assisted in procuring Eleven (11) under contract (4) withdrawn, and 16 recorded SOLD, closed homes.
Many brokerages listed properties more than 30% over market value, and I will not comment, nor even suggest their motivation, not a practice I readily advise or recommend and rarely participate in.
Last August, September 2015 three bedroom, two bath 1600 sq. ft. or more was selling on average at $121.00 per square foot. Values on these statistics since August of 2015 to the February 24, 2016 average sale price per sq. ft. in the past 120 days has significantly dropped and averaging (90) days or more active on the market at an average re-sale price of $99.75 per sq. ft. This equals to 22% drop in values since the end of July 2015.
The average sold price for two bedrooms, two bath 1550 sq. ft. days on the market indicate 75-80 days and average sold price at $101 per sq. ft. up by 12% from August 2015.
The extremely warm fall in the North! Funky Stock Market activity, and gas prices are significant factors in the slower than predicted market. This is reflecting hesitation with investment or 2nd home purchases, especially January 1st. 2016.
It’s apparent, buyers have a price range mostly under $165,000 and a two bedroom with a view is more attractive than any new models with a home immediately behind them. Upgrades have been a plus and records indicate a few have sold for as much as $124.00 per sq. ft.
I am hoping after the March political Caucuses has been completed and more buyers are feeling confident about relocating to Florida, we will experience a lower inventory and much less time on the market.