August Market Watch

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Pierce County Monthly Market Watch

Transcript of August Market Watch

  • Monthly Market Watch forPierce CountyAn overview of what is happeningin the Pierce Countyreal estate market(using August 2011 statistics)

    Provided by Keller Williams Realty Puyallup Statistics from NWMLS

  • Report overview:This report includes MLS data for thepast 24 months in Pierce County only

    as provided by the NWMLS and BrokerMetrics.

    Please note that searches fluctuate daily when running these reports; these figures were obtained on 9/12/11.

    A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying blended statistics will not be as accurate as a

    more detailed report that your real estate professional can provide to help you with your decision making.

    Provided by Keller Williams Realty Puyallup Statistics from August 2011 MLS

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  • Closed Sales Report Analysis:

    Sellers:The month of August saw the number of closed sales increase to 810 units. On

    average, the number of closed units in Pierce County has been increasing month over month for all of 2011. As inventory continues to remain below 5 months, it will be

    important to watch this trend to see how buyers are responding to their opportunities to buy homes with great terms and affordable prices.

    Buyers:For buyers, this means that more buyers closed on a home last month than in the prior

    month. Buyer activity remains high, as buyers are returning to the market and are very committed to purchasing homes. Showing that more buyers are entering the market

    and reducing the inventory of homes for sale. This means there may be more competition for the most desirable homes.

    Provided by Keller Williams Realty Puyallup Statistics from August 2011 MLS

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    Provided by Keller Williams Realty Professional Partners Statistics from February 2011 MLS

    67%

    Non Distressed

    22%

    Short Sale

    11%

    REO

  • Distressed Sales Analysis (For Sale): A bank owned/foreclosure home is one that the seller no longer

    owns it has been taken over by the lender(s) who had a note on the home. Short sales are homes where the seller is negotiating with the bank to forgive a portion of the debt in order to avoid

    foreclosure.

    August saw less than a 1% shift between the percentages of bank owned, short sales, and traditional homes sales. Sellers and

    buyers need to monitor this trend to see how the banks respond in 2011 AND how they treat the shadow inventory that currently

    exists but has not yet been made available to buyers.

    Provided by Keller Williams Realty Puyallup Statistics from August 2011 MLS

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    Provided by Keller Williams Realty Professional Partners Statistics from February 2011 MLS

    54%

    Non Distressed

    37%

    REO

    8%

    Short Sale

  • Distressed Sales Analysis (Sold):

    July statistics saw a decrease in the percentage of short sales (down 3%), a increase in the percentage of REO (up 3%),

    while Traditional home sale remained the same as last month.

    When comparing distressed to non distressed properties the comparison between For Sale and Sold will change greatly.

    Carefully monitor this trend to see how banks respond in 2011.

    Provided by Keller Williams Realty Puyallup Statistics from August 2011 MLS

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  • Pending Sales Report Analysis:

    Sellers:August saw the highest number of pending homes since April of last year. This increase is an indication that buyers are being successful in finding a home and then being the winning contract on that particular property. Sellers should monitor this information to see what how the increase in pending homes sales will effect the average home price

    along with list to sale price ratio.

    Buyers:Buyers are definitely listening to the good news they are hearing about great prices,

    on homes that offer the amenities they want. With interest rates remaining low, affordability is at an all time high, and buyers are taking action. They are not waiting to see what happens in the future because they know any shift could cause them to pay

    even more in the long run.

    Provided by Keller Williams Realty Puyallup Statistics from August 2011 MLS

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  • Average Sold Price Analysis

    Sellers:After seeing the first significant increase in the home prices last month, August has seen another decrease in average sold price. In August, the average home in pierce county

    sold for $220,169. Sellers need to carefully monitor this trend in order to remain competitive AND to make sure that banks considering the approval of a short sale are

    aware of this trend.

    Buyers:The average buyer paid LESS for a home in August than in the prior month. The

    increased number of homes that moved to pending status will be a statistic to continue to watch will this increased activity have an impact on home prices? No one knows

    when this trend will change, and we wont know that the trend has reversed until several months after the recovery. For that reason, it is more important than ever that

    you are consulting with a real estate professional to watch this trend and determine what price is appropriate for a home based on what the seller is asking

    Provided by Keller Williams Realty Puyallup Statistics from August 2011 MLS

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  • Average Days on Market Analysis

    Sellers:This statistic means that the average homes is taking 83 days to receive a mutually accepted offer. This is about 10% bellow the past 2 year average of 91 days. For

    sellers, this will be a statistic to continue to watch as this shows how long buyers are taking to preview homes before making an offer.

    Buyers:Buyers need to be aware of this number because it is an indicator of how long sellers are having to wait to go under contract. The higher the number, the more control a

    buyer normally has. Even if we have an addition of homes to the market via foreclosures, buyers need to understand that competition for great homes continues to

    remain very high, especially in the lower price ranges. The importance of having a reliable lender AND real estate professional to guide you through this process has never

    been more important.

    Provided by Keller Williams Realty Puyallup Statistics from August 2011 MLS

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  • List to Sale Price Ratio AnalysisSellers:

    The month of August saw a 1% increase in the list to sales price ratio. This statistic reveals how close the actual sales price was to the original list price on a home. It is

    important to note that distressed properties can impact this number quite a bit. Continue to watch this trend, as it will impact how homes should be priced in the

    current market in order to appeal to the buyers.

    Buyers:Buyers need to pay careful attention. This increase means that, overall, buyers have a

    little less buying power than they did in the month of July. As demand on lower priced/highly desirable properties continues to increase, in some cases buyers may

    have to pay at or even above list price. Make sure your real estate professional helps you understand the competitiveness of the list price of the home you are wanting to

    purchase.

    Provided by Keller Williams Realty Puyallup Statistics from August 2011 MLS

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