I find these facts interesting:
- 60 Days on Market for the 109 Single Family solds in Longmont for the month of May
- 348 homes in either Active or Active/Backup status in Longmont and their Avg DOM is 65
- Of those 348 A or A/B listings, 243 have been on the market for 60 days or less
- Of the 170 homes in Active only status, their Average DOM is 60 days
There goes my theory of there being a good number of homes on the market that have been sitting there, overpriced, for a long time. There is a term in economics that defines the turnover of money from when it comes in to a person or company to the time in which it is spent again. That term is Velocity; and the higher the number, the more quickly it turns over. I think we are seeing high velocity in the turnover of the entire available housing market.
Before I researched this information, I had assumed that the high velocity segment was only apparent in new listings. What led me to believe this was the high number of reports from clients on how fast their listings were selling. I think the facts above suggest it’s much more prevalent in the market as a whole. This is something that I will try to remember to look at near the end of the summer.
Taking a look at the sales totals from Attached Dwellings in Longmont, the Boulder County Plains and the Tri-Town area, each of these has a lower sales total than last year. This also is interesting and breaks a pretty steady trend we have seen fairly consistently through out the year. My best guess here is that we are seeing the real results of lower inventory. I know this has been discussed and even predicted, but I think this is the first real evidence. Sales are still extremely strong, but even though our total of 109 didn’t come close to the Predictor’s number of 128, it’s still the highest monthly total for May since 2007 (excluding that silly tax credit year of 2010). In fact, we are ahead of 2007’s YTD sales…not quite the amount from 2006, but still the best year in the past 7.
May 2013 Longmont Stats
The Predictor for June says 115 Single Family units are going to close. If there are still about 400 Realtors in town, 25% of them will be making a check. Will you? If not, go get a listing or two…or more.