The Real Story…
News and commentary about the real estate market and related topics.
Dave Parrish, ABR ®, CRSA, CSP, GRI, ePRO ®, REALTOR ®, RealtySouth
For an archive of The Real Story visit: http://www.DavidParrishRealtor.com/myblog
So how’s the market… (part 2)
As a continuation of last week’s conversation, I thought it useful to drill down a bit deeper to look a bit closer at that specific portion of the local macro real estate market for the Eastern Area of Birmingham, that is: East Lake, Roebuck, Huffman, Center Point, Pinson, Clay, Trussville, Argo, and Springville. Understand that even this view is at higher level than that used when making a specific estimate of market value.
As you will see in the detail below all of the areas compromising the Eastern Area Market represent a Buyer’s Market … that is 6 months or more of inventory.
For Zip Code: 35206 East Lake/Roebuck
- · Last 6 months of 2009: 143 Sales of which 100 (69.9%) were foreclosures
- · Active Inventory as of 01/31/2010: 240 of which 98 (40.8%) were foreclosures
- · Absorption Rate: 24 Months Inventory: 10
- · Median sales price: $15,111 Lo: $1,000 Hi: $162,500 DOM: 97 SPL: 85.7%
- · Foreclosure Median Sales Price: 100 Sales $10,950 (Lo: $1,000 / Hi: $95,000 DOM: 83 SLP: 83.0%)
- · Non-Foreclosure Median Sales Price: 43 Sales $99,000 (Lo: $6,000 / Hi: $162,500 DOM: 127 SLP: 91.0%)
- · Pending Sales: 28 of which 24 (85.7%) are foreclosures
- · Pending Foreclosure Median Sales Price: 24 Sales 12,900 (Lo: 6,900 / Hi: 58,000 DOM: 62)
- · Pending Non- Foreclosure Median Sales Price:4 Sales 106,700 (Lo: 56,000 / Hi: 164,900 DOM: 177)
For Zip Code: 35235 Huffman
- · Last 6 months of 2009: 156 Sales of which 81 (51.9%) were foreclosures
- · Active Inventory as of 01/31/2010: 218 of which 26 (11.9%) were foreclosures
- · Absorption Rate: 26 Months Inventory: 8
- · Median sales price: $80,950 Lo: $18,000 Hi: $3200,000 DOM: 82 SPL: 93.0%
- · Foreclosure Median Sales Price: 81 Sales $58,000 (Lo: $18,000 / Hi: $205,000 DOM: 75 SLP: 92.7%)
- · Non-Foreclosure Median Sales Price: 75 Sales $115,000 (Lo: $34,000 / Hi: $320,000 DOM: 91 SLP: 93.4%)
- · Pending Sales: 27 of which 21 (77.8.1%) are foreclosures
- · Pending Foreclosure Median Sales Price: 21 Sales 61,900 (Lo: 24,900 / Hi: 123,000 DOM: 82)
- · Pending Non- Foreclosure Median Sales Price: 6 Sales 120,400 (Lo:104,900 / Hi: 125,000 DOM: 94)
For Zip Code: 35215 Center Point
- · Last 6 months of 2009: 296 Sales of which 195 (65.9%) were foreclosures
- · Active Inventory as of 01/31/2010: 458 of which 105 (22.9%) were foreclosures
- · Absorption Rate: 49 Months Inventory: 9
- · Median sales price: $56,250 Lo: $6,550 Hi: $215,000 DOM: 80 SPL: 92.0%
- · Foreclosure Median Sales Price: 195 Sales $38,500 (Lo: $6,550 / Hi: $155,000 DOM: 73 SLP: 91.5%)
- · Non-Foreclosure Median Sales Price: 101 Sales $90,000 (Lo: $19,900 / Hi: $215,000 DOM: 92 SLP: 93.0%)
- · Pending Sales: 70 of which 47 (67.1%) are foreclosures
- · Pending Foreclosure Median Sales Price: 47 Sales 39,900 (Lo: 23,170 / Hi: 119,900 DOM: 83)
- · Pending Non- Foreclosure Median Sales Price: 23 Sales 99,000 (Lo: 17,900 / Hi: 187,900 DOM: 136)
For Zip Code: 35126 Clay/Pinson
- · Last 6 months of 2009: 194 Sales of which 70 (36.1%) were foreclosures
- · Active Inventory of 01/31/2010: 280 of which 36 (12.9%) were foreclosures
- · Absorption Rate: 32 Months Inventory: 9
- · Median sales price: $124,675 Lo: $155,000 Hi: $500,000 DOM: 84 SPL: 93.7%
- · Foreclosure Median Sales Price: 70 Sales $84,500 (Lo: $15,000 / Hi: $259,900 DOM: 100 SLP: 90.8%)
- · Non-Foreclosure Median Sales Price: 124 Sales $133,006 (Lo: $24,900 / Hi: $500,000 DOM: 75 SLP: 95.4%)
- · Pending Sales: 31 of which 12 (38.7%) are foreclosures
- · Pending Foreclosure Median Sales Price: 12 Sales 77,500 (Lo:47,200 / Hi: 249,000 DOM: 103)
- · Pending Non- Foreclosure Median Sales Price: 19 Sales 159,900 (Lo: 105,000 / Hi: 314,900 DOM: 262)
For Zip Code: 35146 Springville
- · Last 6 months of 2009: 62 Sales of which 10 (16.1%) were foreclosures
- · Active Inventory as of 01/31/2010: 97 of which 12 (12.4%) were foreclosures.
- · Absorption Rate: 10 Months Inventory: 10
- · Median sales price: $175,950 Lo: $500 Hi: $292,500 DOM: 105 SPL: 93.2%
- · Foreclosure Median Sales Price: 10 Sales $71,825 (Lo: $500 / Hi: $274,900 DOM: 112 SLP: 83.4%)
- · Non-Foreclosure Median Sales Price: 52 Sales $178,450 (Lo: $44,000 / Hi: $292,500 DOM: 103 SLP: 95.4%)
- · Pending Sales: 11 of which 3 (27.3%) are foreclosures
- · Pending Foreclosure Median Sales Price: 3 Sales 192,900 (Lo:76,000 / Hi: 199,900 DOM: 36)
- · Pending Non- Foreclosure Median Sales Price: 8 Sales 172,450 (Lo:105,900 / Hi: 330,900 DOM: 131)
For Zip Code: 35173 Trussville/Argo
- · Last 6 months of 2009: 182 Sales of which 38 (20.9%) were foreclosures
- · Active Inventory as of 01/31/2010: 355 of which 26 (7.3%) were foreclosures
- · Absorption Rate: 30 Months Inventory: 12
- · Median sales price: $203,680 Lo: $9,000 Hi: $531,500 DOM: 156 SPL: 94.3%
- · Foreclosure Median Sales Price: 38 Sales $167,700 (Lo: $9,000 / Hi: $355,000 DOM: 147 SLP: 91.6%)
- · Non-Foreclosure Median Sales Price: 144 Sales $211,250 (Lo: $14,300 / Hi: $531,500 DOM: 158 SLP: 95.0%)
- · Pending Sales: 40 of which 12 (30.0%) are foreclosures
- · Pending Foreclosure Median Sales Price: 12 Sales 129,900 (Lo: 29,900 / Hi: 378,900 DOM: 50)
- · Pending Non- Foreclosure Median Sales Price: 28 Sales 218,092 (Lo: 99,900 / Hi: 499,900 DOM: 119)
For Zip Code: 35120 Odenville/Branchville
- · Last 6 months of 2009: 102 Sales of which 44 (43.1%) were foreclosures
- · Active Inventory as of 01/31/2010: 184 of which 28 (15.2%) were foreclosures
- · Absorption Rate: 17 Months Inventory: 13
- · Median sales price: $147,000 Lo: $16,900 Hi: $314,900 DOM: 100 SPL: 95.9%
- · Foreclosure Median Sales Price: 44 Sales $114,450 (Lo: $16,900 / Hi: $314,900 DOM: 56 SLP: 96.3%)
- · Non-Foreclosure Median Sales Price: 58 Sales $159,450 (Lo: $69.000 / Hi: $293,900 DOM: 134 SLP: 95.8%)
- · Pending Sales: 27 of which 4 (14.8.0%) are foreclosures
- · Pending Foreclosure Median Sales Price: 4 Sales $49,200 (Lo:$ 29,900 / Hi: $129,000 DOM: 29)
- · Pending Non- Foreclosure Median Sales Price: 23 Sales $149,900 (Lo: $109,900 / Hi: $321,500 DOM: 155)
For Zip Code: 35004/35094 Moody/Leeds
- · Last 6 months of 2009: 215 Sales of which 47 (21.9%) were foreclosures
- · Active Inventory as of 01/31/2010: 266 of which 16 (6.0%) were foreclosures
- · Absorption Rate: 36 Months Inventory: 7
- · Median sales price: $141,065 Lo: $22,000 Hi: $573,500 DOM: 66 SPL: 95.3%
- · Foreclosure Median Sales Price: 47 Sales $78,226 (Lo: $22,000 / Hi: $289,900 DOM: 61 SLP: 93.0%)
- · Non-Foreclosure Median Sales Price: 168 Sales $150,148 (Lo: $40.000 / Hi: $573,500 DOM: 67 SLP: 96.18%)
- · Pending Sales: 40 of which 18 (45.0%) are foreclosures
- · Pending Foreclosure Median Sales Price: 18 Sales $67.950 (Lo: $19,900 / Hi:$209,900 DOM: 66)
- · Pending Non- Foreclosure Median Sales Price: 22 Sales $152,400 (Lo: $112,900 / Hi: $234,500 DOM: 164)
Conclusions: While Pending Sales indicate a definite increase in sales activity (higher than the absorption rate or average number of monthly sales for the past 6 months), we remain and will remain for some unforeseen period in a Buyer’s Market. Foreclosures combined with inventory levels continue to put downward pressure on pricing with foreclosures representing a larger portion of actual sales than they represent as a percentage of active listings of any of the examined markets by up to a ratio of 3:1.
Next week, I will look closer at how this information might impact real estate decisions with a focus of sellers who after all are those most negatively impacted by the market conditions present today.
NOTE: DPM (Days On Market; SPL (Sales Price to List); Median: the point at which half are above and half are below.
