May, ’06 sales (preliminary) firmed up well in both number of sales and average price per foot. Stat’s are also comparable with May of ’05, reversing the recent downtrend. The major difference this year, of course, is the higher inventory of homes for sale (currently standing at 153). Buyers who have been “sitting on the fence” should take note of the May sales numbers.
May # of Sales $/Foot Avg. Sq. Ft.
2006 33 $359 2,380 sq. ft.
2005 34 $351 2,392 sq. ft.
Other Stat’s to be aware of: Year-to-Date listing Cancellations, Expirations and Withdrawals from the market (also for Scripps Ranch):
Date Cancelled Expired Withdrawn
1/1/05 – 5/31/05 28 6 0
1/1/06 – 5/31/06 41 59 13
Very revealing stat’s here! Not only does this show what we already knew (market is taking a breather), but it strongly suggests the possibility that, at least some people who are listing their homes do not necessarily need/want to sell (“discretionary” sellers). They list their home for sale and, IF, they can get their price, will sell. If not, they just cancel or withdraw or let the listing expire (and become part of the stat’s you are now viewing). We personally know of several of these examples. All failed to sell due to…you guessed it – unrealistic pricing. Unfortunately, these discretionary listings may adversely impact the people who really do need/want to sell (“non-discretionary” sellers) due to job transfers, growing/shrinking families, etc. There is no way to confirm the actual number of discretionary sellers, but based upon the statistical difference between year-to-date ’05 vs. ’06, I suspect there are more than a few out there. Consider it one of the challenges of a free market system. Nothing anyone can do about it.
If any readers would like these or other statistics for communities outside of Scripps Ranch, feel free to let me know.
Hope everybody has a great weekend!!