The January sale price as a percent of list price in The Woodlands was 93.5.
Every calendar year begins at a lower percentage than the average 97%. Homes closed in January were the result of negotiated contracts in December. The last month of the year is traditionally a slower market for property showing appointments; resulting in sellers being more flexible on sale price.
List price is established prior to the actual listing in HAR. The Realtor prepares a Comparative Market Analysis (CMA) based on the actual sales history within the last three to six months of comparable homes...location, condition, amenities, etc. Knowing that homes in The Woodlands sell for an annual average of 97% of list price, a negotiating amount is added to arrive at the final list price.
We still see sale prices over 100% of the list price in our market; a result of multiple offers. We have also seen very few homes sell in the 80% range; a result of the seller establishing original list price rather than using market analysis provided by Realtor.
This year will be a banner year for home values in The Woodlands. Homes in great locations with updated amenities will sell at premium price levels.
Visit Michele Flory for charts by list price range.
The Months Of Inventory is calculated dividing current active listing inventory by average monthly sales of the prior 12 months.
The Woodlands Months Of Inventory in February is 4.5 months. A number above 6 is defined as a buyer's market; meaning there are more listings than buyers. A number below 6 is a seller's market; meaning there are more buyers than available listings.
As the homeselling season begins, there will be a gradual increase in the months of inventory that has peaked in July - August for the past two years.
Visit Michele Flory for charts by list price range.
Tomorrow: List Price / Sale Price
Days On Market is defined as number of days from list date to close date. The 66 closed sales in January were on the market a median 55 days. The median list price was $234,800; ranging from $101,900 to $1,395,000.
January Days On Market typically begins at a higher level before trending down as the homeselling/homebuying season begins. Consider that homes sold (closed) in January were pending (contract) in December and were probably on the market during the slow holiday season in October - November - December(see chart).
Visit here for charts by list price range
Tomorrow:Months-Of-Inventory
The number of contracts for the month of January was 100. Both 2008 and 2007 started the year in the 150 range.
Reasons for the decline in number of contracts include buyers waiting for still lower interest rates, stimulus package incentives, and stricter lender appraisal criteria. In addition, we still have buyers waiting for a major reduction in prices based on continuous national media coverage. Finally, we have buyers unable to find their ideal home in the current inventory of active listings.
The median days-on-market for contract homes in January was 52.25. Compare this with the median days-on-market of all active listings of 75 days. The median list price of contracts in January was $260,850.
Visit here for charts by list price ranges
Tomorrow: Days-On-Market
The Woodlands real estate market continues to counter national media reports of a housing disaster! Current active listings in The Woodlands as of February 5, 2009 total 670 homes; close to same month 2007 and 2008 inventory levels.(see chart).
The median active time on market is 75 days. The median list price of active listings is $374,900.
Location and condition continue to be determining factors for days-on-market prior to contract. Unlike other national markets, we are not experiencing a downward spiral of sales prices. We are still seeing homes in desirable locations with updated amenities sell within one day at a premium price per sqauare foot.
According to the Private Mortgage Insurance Risk Index Quarterly Report, the Houston MSA is rated at less that 1% risk of decreasing property values. View the entire report here.
Out-of-area buyers are still expecting to purchase a home in The Woodlands at a significantly lower price level based on their prior market conditions.
The number of active listings is expected to continue following the historical seasonal trend offering more homes and more choices for move-up and out-of-area buyers.
Tomorrow: Contracts (Pendings)
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Team Leader of Michele Flory and Company, a six-member team 100% focused on The Woodlands, a master-planned community located in Montgomery County North of Houston
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