Let’s begin with the fact that REO closings have dropped to only 44% of April closings while Short Sale closings make up 26% of April closed sales and Classic closing comprise a resounding 30%. However, the most significant single market change this past week has to be the sudden rise in REO inventory. GLVAR netted an additional 133 available REO listings in the past seven days. The marks the first real increase after months of dropping or trending sideways.
Last week I sent our management team a report indicating that the median price of a Single Family Residence (SFR) had seen a significant increase for the first time in a very long time. Well, 22 days into April both the median and average prices continue to be strong even though they are a bit off last week’s levels. Much of the rise in median sales prices is tied directly to the fact that the mix of closings is now dominated by short sale and classic closings – compared to previous months. Let’s hope our Appraiser friends are watching the same numbers! So here’s a breakdown:
Finally, I have had several calls and inquiries about a Turnover Rate By ZipCode report that we put together recently. Obviously my explanation of the methodology to John Joseph was somewhat convoluted, so he explained it to his Green Valley agents as follows:
“Forrest divided the square root of the prime number into the last known equity coefficient of the number of homes not sold prior to 2003 and then multiplied it by the inverse of the probability of sales during the current year and divided that by the average barometric pressure of last Wednesday and finally drank a quart of rum and came up with this….”
That’s what I get for putting together an analysis while listening to a Jimmy Buffet concert on XM Radio! However, I have attached the results of that study for anyone who would like to use it. And in all fairness to John Joseph, he maintains that this report is a valuable tool for researching and taking traditional listings. Thanks and good luck prospecting!
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