Regional Sales Update for September 2010

v  September was a mixed bag for the desert market.

·         Median price was down from last month by 3.3% but greater than September of last year by 6%

·         September sales improved over last month by 5.2% but down from September a year ago by 7%.

v  Why are prices declining in a month when sales are improving?

·         81% of sales sold for less than $300,000

·         18% of sales sold between $300,000 – $500,000

·         1% of sales sold for $500,000 or more

 Sales are so heavily weighted at the lower end that median prices were forced down significantly. 

v  Properties valued over $300,000 cannot lead with or compete on price.  Lead with location, amenities, lifestyle, size, view etc. to justify price.  It’s the “C” in CMA….how do other properties “Compare” not compete.

v  If new listings coming into the market continue to be lower priced properties the buyer pool for higher value homes will most likely remain flat for a while longer.  If the market absorbs the lower priced properties more quickly then median price can uptick; and there should be some movement on the sidelines yielding some growth in the buyer pool…even toward higher value homes.

v  Wild Card?  The public focus on National , State, and Local Elections can put a strong economy into “neutral”…we will have to wait and see.

v  Inventory- The valley inventory stands at 5,969 which is about 200 more properties than last month. The newly listed properties are more than replacing the number sold.

v  Affordability- In 2006 only 18% of desert residents could afford a median priced home but now over 61% can afford one.