January - August, 2010
We are beginning to realize a possible market slip for our community. We all like to believe we live in the greater Aggieland “Real Estate Bubble” but the rest of the world is poking on our bubble. Hopefully July and August was just a bump in our real estate market’s road; However, I’m not so optimistic. Thankfully Heritage Realty is still actively selling and we are still ahead of last year’s business!
We’re seeing people who are serious about their assets and committed to understanding our market forces are listening to us. They are pricing their property ahead of the market and they are getting results. Sellers in the other hand, are trying to “get what the comparables show” or “get what my property is worth” and can even produce an appraisal from last year to back up their numbers. However, as much as we Realtors would like to say we have the power to control what buyers should pay, the hard reality is, we don’t. We have zero control over what buyers will pay and unfortunately, buyers have the most inventory in decades to choose from and are looking for “the deal of the decade”!
Unfortunately our market’s statistics are supporting buyer’s “deal of the decade” mentality. The number of properties sold in July 2010 versus July 2009 is down 38%. Our market inventory continues to soar and sits at 1,514 properties. This is 20% above this time last year but is compounded by July’s inventory being 33% over July 2009. On anomaly has been our “Days on Market” (The amount of time it takes from the day it’s listed to the day it’s closed) has decreased. I believe this is happening because real estate agents are taking listings out of our MLS if they have been on the market a long period of time to avoid low offers and stigmas associated with a stagnate market.
Year to date the number of sales are only down 4.1% over 2009. However, 2010 January – June we were +9%. In my opinion this is 100% attributed to the Federal home buyers credit which pushed buyers that were considering buying in 2010 to make their transaction within the 6 months. Even if I were to extrapolate the data out over 2010, the numbers would still look bleak.
Below is a more detailed “snap shot” of our market’s fundamentals:
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| From TX Real Estate Center http://recenter.tamu.edu/data/hs/hs180b.htm |
- The Total Sales Volume
o in June 2010 was down 6.4% from June 2009 and down 11.3% from 2008.
o in July 2010 was down 38% from July 2009 and down 50.3% from 2008
o in August 2010 was down 22.6% from August 2009 and down 35.1% from 2008.
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- The Number of Homes Sold:
- in June 2010 was down 10.6% from June 2009 and down 13% from 2008.
o in July 2010 was down 37.8% from July 2009 and down 47.3% from 2008.
o in August 2010 was down 21.3% from August 2009 and down 32.9% from 2008.
Sales | 2009 | 2010 | Change |
January | 87 | 89 | up 2.3% |
February | 91 | 107 | up 17.6% |
March | 151 | 176 | up 16.6% |
April | 183 | 233 | up 27.3% |
May | 266 | 282 | up 6% |
June | 300 | 286 | Down 4.7% |
July | 304 | 189 | Down 37.8% |
August | 249 | 196 | Down 21.3% |
September | 128 | ||
October | 144 | ||
November | 148 | ||
December | 133 | ||
2010 Year to Date | 1631 | 1564 | Down 4.1% |
· Number of Listings taken
o In July 2010 was up 45.6% from July 2009 and up 24.3% from 2008
Listings Taken | 2009 | 2010 | Change |
January | 371 | 344 | Down 7.3% |
February | 421 | 441 | Up 4.8% |
March | 622 | 541 | Down 13% |
April | 362 | 484 | Up 33.7% |
May | 334 | 372 | Up 11.3% |
June | 403 | 422 | Up 4.7% |
July | 447 | 450 | Up .7% |
August | 295 | 543 | Up 45.6% |
September | 257 | ||
October | 241 | ||
November | 193 | ||
December | 179 |
- The Available Homes in July 2010 rose 33% from 2009 and was up 35% more than 2008.
- In July there were 189 residential properties sold
- 119 single family
- 21 condos
- 7 manufactured homes with land
- 8 patio/townhouse
- 11 houses with acreage
- 0 recreational
- 17 new builder homes
- 1 new builder homes with acreage
- 5 new builder patio/townhomes
Available Listings | 2009 | 2010 | Change |
January | 1111 | 1298 | up 16.8% |
February | 1188 | 1439 | up 21.1% |
March | 1265 | 1577 | up 24.7% |
April | 1272 | 1588 | up 24.8% |
May | 1254 | 1613 | up 28.6% |
June | 1253 | 1588 | up 26.7% |
July | 1233 | 1646 | up 33.5% |
August | 1222 | 1514 | up 20% |
September | 1243 | ||
October | 1216 | ||
November | 1175 | ||
December | 1114 | ||
- Total sales were $30,773,396 (Down from $61,873,310 in 2008)
- Buyers are absolutely and undeniably in control.
- Inventory is extremely high and sellers should try to position themselves AHEAD of the market. Do not FOLLOW the market and work with every offer they receive.
- Buyers have MANY choices.
- Mortgages are available but nationwide more people have a credit score too low to get financing than last year.
- Interest rates are at historic lows and falling but that is not injecting more buyers into the market.
If you are ready to sell, take what we’ve learned, contact me, and let’s get it done now!
www.BCSHeritage.Com
www.BCSHeritage.Com
