The first chart show the sales data for the first three quarters of 2008. The increase in the 3rd quarter sales numbers and the level median sales prices for all 3 quarters is encouraging. But look at the levels of the Original Listing Prices and the Listing Prices at the time of entering into contract and at the Closed Selling Prices.
Chart 2 graphs the 2008 3rd Quarter Under Contract Stats – in comparison to 2007.
In the 3rd Quarter, 2008, 71 homes in Dix Hills/Melville, SD#5 went Under Contract. Of those 71 homes, 37 Closed within the same time period. The Median Selling Price of those 37 Homes is $720,000. Again a decline from the Median Selling Price of $732,500 for all homes Closed during the 3rd Quarter – irrespective of when they entered into contract. Two positive factors are the number of homes entering into contract – 71 in 2008 vs. 53 in 2007 and the Days on the Market (DOM) are about the same this year as last.
Chart 3 graphs the 2008 3rd Quarter Closed (Sold) Stats – in comparison to 2007
This chart indicates that the number of all homes which Closed in the 3rd Q, 2008 is about the same as last year and that the DOM in 2008 is less than last year. The Median Listing Prices and Sold Prices are substantially less in 2008 than in 2007.
Chart 4 shows exactly what is happening in the market. Look at the spread between the Original Listing Prices of the Available Listings and the Closed Selling Prices! There is almost a $129,000 difference between the median Original Listing Price and the median Selling Price! Only when the listing price of the house is brought down to the Under Contract Price (which is the listing price of a home at the time it goes Under Contract) does it sell. Even then, the selling price is markedly lower.
Prices have declined about 10% from a year ago, but 3rd Quarter, 2008 sales numbers are about the same as this time last year. On September 30, There were 238 Available Listings in Dix Hills and Melville, SD#5. Even though there are indications that the bottom of the market is in sight – and selling prices seem to have leveled off some – most economists don’t expect a rebound for at least a year – maybe longer. And – prices may continue to soften some. But with the lower mortgage rates, astute buyers know that now is probably the best time to buy.