OWN THE SUMMIT

November real estate sales in Summit County followed an all too familiar pattern with unit sales showing a marginal year-over-year increase but dollar volume continuing to decline.  During the month, there were a total of 142 closings, up .7% from November of 2010 and down 12% from October.  Dollar volume totaled $58.5 million, down  2.7% from a year ago and off 14% from the prior month.  It should be noted that the sequential decline is reflective of the normal seasonal pattern over the last several years.  On the plus side, it would appear the pricing pressures eased somewhat although demand remains focused at the lower end of the market.  For the month, 81% of the transactions were under $600,000 versus 75% for the year to date.  The average single family price dipped $5,000 to $745,000 but multi family pricing actually ticked up to $363,800 from $363,600 in October and even raw land saw some firming with ASPs rising $2,000 to $255,000.  Inventory rose during the month with Single Family and multi-family listings both increasing by 7%.

Summit County real estate market trends

Summit County October Real Estate Statistics

October sales in Summit County followed what has become an all too common pattern – an increase in transaction volume but a decline in dollar sales. For the month, the number of transactions rose 5% year-over-year to 161 and were up slightly from 160 transactions in September. Dollar volume, however, dropped to $67.8 million, a 15% decline from both the $79.8 million of a year ago and similar total for September, 2011. The dichotomy in performance between the numbers and the dollars reflects two factors. First, prices continue to be under pressure as inventory, both real and shadow, is still historically high while buyers remain wary. Of even greater impact is the shift in demand toward the lower end of the market. In October 81.6% of the transactions were for less than $600,000 and only 5.1% exceeded $1 million. For the year-to-date, 74.2% of transactions were below $600,000 and 10% were above $1 million.

The Summit County real estate market continues to slowly recover although the action continues to be strongest at the lower end of the market.  In April,  transaction volume rose 5.8% sequentially and 34% year over year with 91 sales in the period.  Total dollar volume reached $40.8 million up 9% from March and 8% from the year ago period.

Sales mix continues to favor the lower end of the price spectrum.  In April , 51 of the 76 (67%) residential sales were priced under $500,000.  The change in mix—and likely overall decline in pricing—also has been reflected in average selling prices.  Year-to-date, the average single family transaction has been $734,020 down 19% from all of last year.  Multi-family average prices have fallen to $367,857 versus $398,051.  One large lot sale earlier in the year has skewed the average lot sale upward to $430,708 versus $399,025 but raw land is actually the weakest sector in the market at this time.  New construction has virtually ground to a halt and spec builders—primary buyers of raw land—are already sitting on unwanted  inventory.

While pricing and price points remain under pressure, volumes have steadily improved since the sharp fall off in January.  We expect this trend to continue as we enter the strongest selling season.  Given the relatively high inventories, it is unlikely that prices will rebound sharply anytime in the near future.  Rising sales volumes, however should come as a relief to those that need.