Pimmit Hills Market Analysis for first half of 2010

The sales activity in Pimmit Hills seems to be about the same in 2010 as it was in 2009. In 2009 49 homes sold compared to 24 homes sold in the first half of 2010. With the activity remaining the same, what is happening to the prices? There has been some expectations that the homebuyer credit would affect the prices and that some appreciation would be followed by some stabilization in prices the second half of 2010.

The types of homes sold in Pimmit Hills remains stable. The amount of distressed sales (foreclosures+short sales) have been in the 25%-35% range the last three years. This was supposed to be the year of the short-sale, but it doesn't look like those are taking off in Pimmit Hills.

For the first half of the 2010, the lowest price sale was a 3br/1ba tear down at $270,000. The max price was a 5br/3.5ba newer home that sold for $730,000. The average price for all homes sold was $380,058, up from $367,254 in 2009.

In 2009, homes on average sold for 96.8% of the original list price and 101.1% of the final list price.
In 2010, homes on average sold for 101% of the original list price and 102% of the final list price.

So, if you are looking to purchase in Pimmit Hills odds are that you will be paying above asking price.

There are 8 pending home sales in Pimmit Hills as of 07/09/2010 with asking prices on those properties in the $299,500-$519,000 range. Five of those 8 are short sales and one is a foreclosures. However, 4 out of the 5 short sales have been on the market waiting to close for over 6 months (and some of those over a year pending...) About 1/3^rd of the sales in Pimmit Hills were a short-sale or a foreclosure in 2009 and this year it will probably be about the same.

The average days on market in 2009 was about 60, so far this year it is only 20. So, there is a high demand for homes in Pimmit Hills!

Ten homes are currently available for sale in Pimmit Hills. The lowest priced one is $299,000 and the highest is priced at $895,000. If you would like the current list of homes for sale, please email me.

To get a better understanding of the overall price curve in the neighborhood we need to compare apples to apples. I have therefore tracked sales of 3br/1ba 1 level ramblers in the neighborhood over the last couple of years. Keep in mind - some of these homes may have family room extensions in the back (most add a second bath in those cases though) or be completely updated. So, prices will vary quite a bit. Nevertheless, it makes it much easier to see what the trend is as the mix of homes sold continuously changes skewing the min, max and average sales price.

As can be seen from the above graph, the average sales price is trending upwards in the second quarter. Based on the last few sales, the number of pending properties and the limited supply demand is strong and the current level will hopefully hold also after the expiration of the homebuyer credit. The number of sales of basic ramblers has not been that large, so we will need the rest of the year to determine more accurately what the trend is. But, things look good up to this point!

This could change if there are a lot of foreclosures coming up, so looking at the upcoming foreclosures on Realist I found 0 pre-foreclosure, 14 auctions and 5 bank owned properties. Some of the bank owned ones are already listed or are already under contract/sold (there are 4 auctions in July and a quite a few in May and June, so will likely be more foreclosures coming on the market in Pimmit Hills soon.)

Moving on to rentals the prices have remained pretty steady but have been trending downwards slightly over the last few years. There are currently 3 properties listed for rent ranging from $925 for a 1br/1ba part of a home to $3,750 for a 4br/3.5ba.

For investors the GRM was getting more and more attractive since 2005. However, due to the stagnating rents and increase in prices the ratio has been getting worse. Investors are still buying in the neighborhood - especially foreclosures and tear-downs.

Pimmit Hills is a great neighborhood in a fantastic location. Interest rates and prices have not been this low in many years. If you would like to discuss selling or purchasing in Pimmit Hills please give me a call at 703 560-3424.

Are Andresen
Broker, Soldsense Realty LLC
"Your sixth sense in real estate"

Disclaimer: The data above is not guaranteed in any way and may contain errors and omissions and is based on MRIS data only. The analysis is my opinion only - always do your own research.