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A NOTE OF CAUTION

Written by Leslie Kopp Wednesday, June 09, 2010

I had a very busy May, with seven single-family homes under contract, two of which were over the one million dollar barrier, a rare occurrence this year.  So I was surprised to see the overall May number of only sixteen contracts, two less than a year ago.  You will recall that for most of this year the market has been a good bit stronger than in 2009.  My own experience is that inquiries remain strong.  Still, the demand for higher priced homes (over one million) which normally starts about now has not yet appeared.  Last year there were seven such contracts in May but only two this year.

The condo/townhome market, however, continues strong.  There were sixteen contracts in May, double those of a year earlier.  Furthermore, last year there were only two properties where the asking price of new contracts exceeded $500,000.  This May there were six.

Overall, the market is still healthy but sellers should be cautious in their expectations at the moment.  Hopefully, June will see a return to previous trends in the single-family market.                     

*Source Bethany/Fenwick area of Sussex County MLS

RECOVERY ON TRACK

Written by Leslie Kopp Thursday, May 27, 2010

The recovery in our market which became apparent at the start of the year continues as predicted.  April single family homes under contract reached 13 compared to 7 in 2009. Once again concentration was in lower price homes, common in this stage of a recovery.  Like last month, Bethany itself was the most active market.  The condo/townhome market also improved in April, with 14 properties under contract compared to 8 a year earlier.

You may recall that for the first two months of the year new contracts for condo/townhomes greatly outpace the single family market.  Interestingly, since March the two markets are roughly equal, signaling a gradual willingness of buyers to commit to higher priced purchases.  Recent showings of mine are confirming the trend.

Price reductions continue to slow, with fewer this year than last.  Furthermore, 35% of the reductions were greater than 10% in 2009 and only 14% this year. All of the 10%+ 2010 reductions were on homes listed over one million.  My impression is that there are fewer over-priced homes on the market than there were last year.                                                                                                                                                                                 

STRENGTHENING

Written by Leslie Kopp Wednesday, March 31, 2010

The better ‘feel' of the market described in our last two posts is now being reflected in the numbers. During March, 11 single family homes went under contract compared to 5 a year earlier, the first better month of the year and by a wide margin. Focus remained on the lower end, with only 3 at an asking price of over 1 million. The strong condo/townhome market continued, with 10 new contracts which were twice that of 2009.

As noted before, prices are stabilizing. So far this year, there have only been 54 price reductions, of which 7 were for more than 10%. 3 of the 7 were in North Bethany. By contrast, a year earlier there were 66 such reductions and over 40% were greater than 10%.

While price stabilization means that buyers can feel confident in buying decisions today, it is not likely to result in higher home prices for some time. Inventory is high, with over 200 single family homes available today. Price remains the driver. A disproportionate number of this year's price reductions were in Bethany itself, and over 90% of March contracts were as well.

Trends Continue

Written by Leslie Kopp Wednesday, March 03, 2010

TRENDS CONTINUE

February saw the trends in January continue.  Single family homes under contract are below a year earlier which is not a particularly good comparison.  On the other hand, the townhome/condo market was much stronger, up 73% from 2009.  Increasing activity among the lower price points are a sign of a recovering market.  The higher number of single family over a million under contract this year (3 vs. 1) is not enough to suggest a change in that market as of yet.

Nevertheless, as noted last month, inquiries remain as strong as I have seen in years.  Scheduled showings are up although many have been cancelled as a result of the weather.  These showings will still take place when things improve and their impact should surface in March or April.  I remain optimistic for 2010.

On a less positive note, we may be experiencing some issues with appraisals, as is true with most real estate markets around the country.  Appraisers have few comps to go by and changes in lender criteria make them understandably cautious today.  I am spending more time now pointing out the differences in property and location.  Fortunately, the experienced appraisers are willing to listen but buyers can still expect higher down-payments than they have in the past.

Overall, with a market reaching  price stability, superb inventory, and low interest rates, I believe we will look back on 2010 as a year when there was no better time to be a buyer.  Certainly, I cannot remember a time when I was so impressed by the quality, breadth, and price of my listings, both current and those on the way.  Look through them and you will see what I mean.