Weston Real Estate Market Update October 2009
October is usual…promising news
Around this time of year, business tends to slow down. But the tempo of the real estate market has been anything but slow lately. For example, some properties in the $800k to $1.3m range have received multiple offers. Existing home sales bounced back strongly in September and October with first-time buyers driving much of the activity. While Weston’s total property sales for the ten months through 10/31/09, are down 23.9%, sales were strong in October…units sold increased by 25% over October of 2008. 95% of the sold properties in the month of October were under $1.2m, but the upper end market did experience an up-tick in property showings. Most of these buyers are moving up in price point locally; consolidating multiple properties, and some are from the City. Most of these buyers are well-versed in Weston’s standard of living advantages, its superb school system and market-driven property values.
Our active inventory matches this same time period over the last three years, with 150 active properties on the market. The good news is that there are 62% more properties with an accepted offer, when compared to 11/1/08, although 20% fewer properties under contract. The overall conclusion is that there is significant market activity during the time of year when a falloff is normal.
There is no doubt that low interest rates, lower prices, and a motivating tax credit are boosting home sales. President Obama signed legislation to extend the $8,000 home buyer tax credit for first-time buyers and added a $6,500 tax credit for repeat buyers who have lived in their home for five of the previous eight years. Income limits have been expanded to $125,000 for individuals and $225,000 for joint filers, a $55k increase above the previous level. Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. This legislation places an $800,000 cap on the home sale price. We are optimistic these tax credits will continue to fire-up the housing market, driving existing home sales to the highest level in over two years. The push to extend and expand the tax credit has been led by home builders, Realtors and other groups connected to the housing market
Even with this recent improvement and early signs of price stabilization, the market is still underperforming. As NAR economists Lawrence Yun states, “Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.” More Americans are falling behind on their mortgage payments or losing their homes as the impact of job losses becomes real. The result is rising foreclosures and short sales that have a negative effect on home values. Despite all the bad news, there is some reason for optimism…four straight months of rising home prices. Progress is not as rapid as we would like, but there is motion in the right direction.
Weston Real Estate Sales Activity - October 2009
| Properties Sold | 10/31/07-10/31/08 | 10/31/08-10/31/09 | Change | Price Range | Active | Offers | Pending |
|---|---|---|---|---|---|---|---|
| Total Homes | 117 | 89 | -23.9% | $0-999k | 66 | 5 | 7 |
| Avg. Sale Price | $1,206,209 | $932,818 | -22.7% | $1m-1,499m | 30 | 3 | 1 |
| Median Price | $930,000 | $810,000 | -12.9% | $1.5m-$1,999m | 31 | 0 | 0 |
| Highest Price | $5,200,000 | $2,900,000 | -44.2% | $2-$2,499m | 6 | 0 | 0 |
| Lowest Price | $290,000 | $172,500 | -40.5% | $2.5-$2,999m | 8 | 0 | 0 |
| $3m+ | 9 | 0 | 0 |
