The National Association of Realtors (NAR), Florida Realtors (FR) and the Gainesville Alachua County Association of Realtors (GACAR) released their June sales numbers this month. The national June numbers were below expectations but well ahead of June of 2012.
Lawrence Yun, the Chief NAR economist, said that an interesting anomaly has appeared. Existing home sales less then 100k fell 20%, and home sales above 500k were up 25% resulting in a much higher median price nationally. Bosshardt Realtor Craig Wilburn said, “In our market this compares to the 300k and up price range and is why our median price has grown from 150k to 175k”
When asked whether the same anomaly cited by Yun was apparent locally, Bosshardt Realtor Vice President Perry McDonald said “I believe it. My research indicates a huge uptick in sales from 200k to 400k on the order of 40-60% depending on exactly which price you look.”
The Gainesville MSA report shows the overall number of closed sales are up 49% from 2012 for Single Family Homes. The median days on market fell 50%, from 125 to 62 days.
Closed condominium sales, which are reported separately, were actually down 23% in the area. I asked Perry why the local condo closed sales are down, he said “It was a dead cat bounce in 2012” and pending sales in Condos are strong as many University of Florida students, professionals and professors look to close before the Fall Term begins. Pending sales for Condos are up 23% from last year.
Pendings in the Gainesville Single Family homes MSA are also up strong, showing a 46% increase over June 2012. I asked Craig Wilburn about the numbers and he said, “These year-over-year numbers show that the overall market is strengthen and I feel this trend will continue. We are seeing more and more sellers excited to put their homes on the market.”
Wilburn also noted, “Even with a 14% increase in inventory, there isn’t enough supply. It is quickly becoming a heavily favored Seller’s market. The one thing most important for consumers to know is that quality inventory is more important then overall inventory. Quality inventory are homes that are priced right and positioned properly. The quality inventory is significantly low and that is the real market.”
On the point of quality inventory, Chris Handy echoed the sentiment and said this actually explains the lower sales number under 150k. “The quality of the overall inventory under 150k is bringing down that market. The comparable sales are low because they are distressed sales and abandoned homes. That makes it hard for the sellers of quality homes to want to sell. Under 150k, it is still a buyers market.”
It was noted that there is one less business day in June 2013, than 2012. Case Shiller reports their national home price index tomorrow at 9am EST. Friday the Jobs report will be released and is forecasting a decline in overall unemployment.