Market Watch Sept. 2011

Monthly Market Watch for Pierce County An overview of what is happening in the Pierce County real estate market (using September 2011 statistics)

Provided by Keller Williams Realty Puyallup – Statistics from NWMLS

Report overview: This report includes MLS data for the past 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 10/27/11.

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 September 2011 MLS

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Closed Sales Report Analysis:

Sellers: The month of September saw the number of closed sales decrease by 7% from last

month. Although, comparing September of this year to last year... Closed sales are up nearly 19%. 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: Even though we had a decrease in number of homes sold in September… buyer activity remains high. 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

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

65% Non Distressed

23% Short Sale

12% 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.

The month of September saw the following changes in overall percentage of the market:

Short Sales – Up 1%

Bank Owned – Up 1% Traditional – Down 2%


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

55% Non Distressed

36% REO

9% 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.

The month of September saw the following changes in overall percentage of the market:

Short Sales – Up 1%

Bank Owned – Down 2% Traditional – Up 1%


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Pending Sales Report Analysis:

Sellers: As has been the pattern for the month of September in the past 2 years, last month

saw an decrease in the number of pending sales. This 10% decrease is an indication of the market starting to slow as we head into that winter months. Sellers should monitor

this information to see what impact, if any, this might have on future sales.

Buyers: Pending homes sales are up 17 percent from this time last year. 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.


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Average Sold Price Analysis

Sellers: The downward trend continued during the month of September, averaging the lowest

average sales price in the past 24 months of $208,636. Sellers need to carefully monitor this trend in order to remain competitive AND to make sure that banks

considering short selling a home are aware of this trend.

Buyers: For buyers, this means once again, the average buyer paid LESS for a home in

September than in the prior month. However, the number of pending a sold homes are up this year vs. last… does this increased activity mean more competition for homes? No one knows when this trend will change, and we won’t 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.


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Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 9/09 to 9/11 88 90 87 85 91 92 92 91 84 87 87 87 93 87 89 96 88 104 100 92 94 84 85 83 88

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Average Days on Market (24 month overview)

Average Days on Market Analysis

Sellers: This statistic means that the average homes is taking 88 days to receive a mutually

accepted offer. This is slightly bellow the 2 year average is 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.


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List to Sale Price Ratio Analysis

Sellers: 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 statist shows what the average home sold

for in relation to its original asking price. In September the average buyer paid 92 percent of asking price. This is an average for all price ranges… 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.


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Expired Listings Analysis

Sellers: During the month of September 628 homes were removed from the market. The total

number of homes expiring is down 43% from this time last year. Meaning buyers had more homes from which to choose than in prior months. Serious sellers need to pay attention to all

of the numbers this month… days on the market, the average sales price, and homes expiring from having a market presence due to lack of buyer interest means sellers need to

pay very careful attention to how homes are priced so they can be the first choice of buyers.

Buyers: For buyers, be aware that there are 628 fewer homes to consider. This means buyers will have to be more patient with homes still active AND be prepared to act quickly on available homes. Continue to watch this trend, as this, combined with price, days on market, and list

to sales price ratio are an important indicator of what buyers need to do in order to be successful in closing on the home of their dreams.


INVENTORY OVERVIEW Following is an overview of what is happening with the

inventory of homes currently available in Pierce County and

the MLS.


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New Listings Analysis

Sellers: September saw a slight decrease in the number of new homes entering the market. This

statistic means there were 1,224 NEW properties available to buyers – they could be traditional sales OR they could be distressed sales. September saw 7% fewer homes

enter the market than this time last year. For sellers, a competitive original asking price is greatly important to successfully selling. It is important that you monitor the average sales price along with talking with your real estate professional about local home sales

in your neighborhood.

Buyers: This is important news for buyers, as it means there has been an decrease in new

properties available for buyers to choose from. It is very important that you continue to spend time with and listen to your real estate professional to develop your strategy for

succeeding in a market that is constantly changing. Be prepared: a change in the number of new listings could be great news if there are more homes from which to

choose OR it could present challenges if the inventory continues to decrease.


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Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 9/09 to 9/11 7,85 7,66 7,06 6,79 7,28 7,20 7,69 7,92 7,55 8,03 8,41 8,34 8,20 7,92 7,37 7,12 7,14 6,81 7,19 7,20 7,32 7,40 7,32 7,20 6,86

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Number of Active Listings (24 month overview)

Active Listings Analysis

Sellers: The number of active listings dropped 16% from this time last year. September ended

with 6,836 available properties. This has been influenced by more homes moving to pending status and a reduced amount of new homes coming on the market. Sellers

need to make sure that they continue to watch what the banks are doing with foreclosed properties and “shadow” inventory that could increase a sellers competition.

Buyers: Buyers still have inventory to preview. Continue to monitor this statistic, as it WILL be

the statistic that indicates how much new inventory you will have to preview… the lower the number, the more likely the competitiveness for lower priced homes will remain part of the current market. As always, market activity is local and should be researched with your real estate professional to determine the activity and desirability of the homes that

are of interest to you.


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Months of Inventory Analysis: (This report has been generated by taking the number of active

listings and dividing it by SALES for the past month)

Sellers: For the ninth month in a row, the months of inventory has been bellow the national average

according the National Association of Realtors. September ended with 6.4 months of inventory. This statistic means, that on average, we are in what is called a “balanced market”

that is identified when this statistic reflects 5 months or more of inventory. This means sellers have a little more competition for buyers. It continues to be very important for you and your real estate professional to monitor this number so that you can make sure your

home is priced accordingly in order to become the choice of the buyer pool.

Buyers: Buyers will want to seriously monitor this, as it indicates a shift away from a buyers’ market – a balanced market traditionally gives equal control to the sellers and buyers. We are seeing

this in many price ranges and experiencing significant competition for desirable homes. However, the type of market will vary from price range to price range and even area to area. Work with your real estate professional to make sure you understand the type of market you

are in.


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IMPORTANT INFORMATION:

Although these reports are beneficial in understanding the general market in Pierce County,

it is essential that you meet with your real estate professional to study these same figures in your area, as statistics will vary from

neighborhood to neighborhood.

As you make decisions related to the purchase or sale of a home, it is important that you understand how the current real estate trends will impact your decisions. Your real estate professional is available

to help you monitor and interpret them to make sure that you are taking advantage of the current market

whether you are selling OR buying.

Market Watch Sept. 2011

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Transcript of Market Watch Sept. 2011