Even I am having a hard time believing what I see here. The Predictor said we should have 86 sales this month…I did not believe my own creation and here we are at 85. Now, we are staring a 30% monthly gain right in the face and a year-to-date increase of another 27.7%. I officially turned optimistic last July, but even I wasn’t crazy enough to predict these returns. The first 4 months of the year have been so strong that if this keeps up we could surpass last years’ total by the end of August!…but that’s a long shot.
Demand is strong and supply remains low. Some people still can’t afford to sell or their situation has improved enough for them to remain paying for a property that might be underwater. This is an example of two key components in a healthy real estate market…optimism and confidence. Without these two factors there would be significantly more short sales available, foreclosures happening and people generally bailing out on their house payment. Proof positive of this claim is the significant jumps in Median and Average Sales prices though out this report.
The prices and values of homes have risen slightly. Did you hear that? Slightly. The Median and Average Sales prices have risen significantly. Just because the Median and Average have risen, doesn’t mean the actual values have increased all that much…it just means that is where (as a good friend of mine explains it) the business is occurring. Here are the facts:
From January 1 to April 30 2011 there were 30 solds in Longmont over $350,000.
From January 1 to April 30 2012 there were 42 solds in Longmont over $350,000.
That is a 40% increase for those of you keeping score. And for the record, it’s 0 last year and 4 this year for homes sold over $600k. The icing on this cake is that the number of homes sold during the same period for under $200k has not changed, so that business has remained steady.
And for the record, The Predictor for May 2012 says 99.