A look at the first couple of months

Everyday someone asks me "So, how's the real estate market for you?" Most do so rhetorically.
I simply reply that the market is good. Sometimes the look on peoples face is in disbelief. I explain that life goes on despite the reports of the world coming to an end. People still get married, have children, get divorsed, get promoted etc., etc. I am reminded by my father, who was a Real Estate Agent since the 80's, of this. He also speaks of stories when my Grandfather sold Real Estate during the depression. Life goes on, all things change.

I recently analyzed the Gloucester County sales statistics to demonstrate what is going on:

February 2008
608 homes listed at an average LIST price of $288,766 average SOLD price $239,518 17 % L/S

February 2009
488 homes listed at an average LIST price of $264,802 average SOLD price $213,946 19% L/S

These statistics tell me that homes are being listed almost 20% higher than what they are selling for, but the average sold price is only 6% less compared to this time last year.

Very interesting when we look at what has happened over the past 4 years

For the month of February:
2004 average LIST price $208,560 average SOLD price $166,232
2005 average LIST price $231,507 average SOLD price $201,968
2006 average LIST price $270,783 average SOLD price $238,649
2007 average LIST price $289.548 average SOLD price $236,908

We had a 20% increase in average sold price from 2004-2005. As I see it......

If you took 2004 average sale price, then calculated 4% appreciation year-over-year (the average rate real estate appreciates) We are still ahead of the gain!!!! Oh yes, punn intended.

Bottom line-homes are selling and real estate most often appreciates.