Market Update:The chart on the right depicts the average sales price in Bonneville Co for Single Family Residences from 2005 - 3Q 2009.
As you can see, we are currently trending around 2005-2006 sales price levels, down significantly from 2007 and 2008. Year-over-year, 2009 was down 5% in the first quarter over the same period in 2008, and down 11% in both 2Q and 3Q, over 2Q and 3Q 2008, respectively. The 3Q09 average sales price was $169,900 vs. 2008's $190,195 and 2007's $186,417 in the same period.
Are we leveling off? Perhaps. Yet we are now in the fourth quarter, and as you can see in the previous post, our selling volume is historically down in the fourth quarter of each year. Even with slower sales, in the past we have not lost market value in the properties that do complete their sale in the fourth quarter, with the exception of last year. Will 4Q2009 loose value from 3Q2009? Unfortunately, it is very likely.
An additional factor to this which has yet to be reflected completely is effect of the First-Time Homebuyer Tax Credit. Typically, first-time buyers are shopping in a price range at or below average sales prices. If the bulk of the November volume proves to be in the sub-$169,900 range, it could pull the averages down as well.
Stay tuned....
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