The median sale price for single-family detached home sales remained $175,000 for the 3rd consecutive month. Average sale price, however, continued to decline. In 2008, the average sales price for single-family detached homes was $210,406; in 2009, it was $247, 795, and in May, $210,406. Nevertheless, both median and average sales prices are still above those of 2005 when the annual average was $205,731 and the median $166,500. In analyzing the figures, it may also be useful to bear in mind that the highest selling price ranges are currently between $160,000 and $179,000 for single-family detached homes. (Single-family detached home listings and sales represent approximately nine times those of attached homes listings in our market area.)
What drives our Market?
Continued low interest rates, declining home prices, and FHA loans seem to be the current driving forces behind our market. According to several reliable sources, in recent weeks, contrary to what many expected, the 30-year fixed-rate mortgage remained comparatively, low averaging 4.72% - 4.79%, down from 5.59% a year ago. Also, average rates on 15-year fixed-rate mortgages were 4.17%, falling from 4.2% to 5.06% in previous weeks and 15-year rates set a new low in recent weeks. First-time homebuyers still have a resource in FHA loans. .
The Million dollar Question
The question still remains. Is our market recovering? In one form or another, that’s the question I hear most often. My answer is that our market has not fallen as much as it could have. Our average and median prices are still better than they were 2005. I think the market is on the threshold of recovery. If the buyers sitting on the fence were to get off, it could be advantageous to them (the convergence of favorable conditions will not last indefinitely). That one act on their part might just prove to be the little extra push that the market needs to be on its way to recovery.
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