Closing Comments: The see-saw continues
The second half of the year starts with fairly mixed results. Closings totaled 35, up over 230% from last year, and represented the best July we have seen since 2006. It also ran ahead of the average number of sales for the last 18 years. However, the median sale level was $740,000, just under 17.8% below this time last year. Average sale also dipped 17%. Inventory fell to its lowest level since March at 185 and while this is 3% behind last year at this time, it is ahead of every August since 2006.
Like the monthly figures, the year-to-date closings continue to gain (now over 28% ahead of 2011). With the growth in sales, the total revenue is up over 13%. However, the median sales price is down 6.6%, and average sales, down 12%, continue their slide from last year’s level. While the pipeline is relatively strong there are only three houses with list prices over $1,300,000. It is encouraging that one of these has a last list price of over $2,000,000 even though it has fallen 25% since it went on the market in February 2011.
Statistics can be somewhat misleading as they don’t take into account location, condition, topography etc.; however, it is interesting to note that until you get to houses that sold for $1,100,000 and up, the highest price per square foot is in the $600,000 to $799,999 range (plus or minus $250). This range had the highest final list-to-sales price ratio below $1,100,000. At the same time, houses that have sold year-to-date in the $900,000 to $999,999 range have had the lowest price per square foot at $221. As we move towards the start of the fall season, it is expected there will be increased uncertainty going into the election cycle in the real estate market.
Marion Filley is a Realtor at Prudential CT Realty, 101 Old Ridgefield Road. E-mail: firstname.lastname@example.org or MFilley@prudentialct.com.