The Average Sale Price for the fine home market, in our area, has remained relatively stable in the past four years; perhaps more stable than almost any other segment of the area’s real estate market. The Days on Market have increased since 2007 and remain much higher also indicating a continued slow market.
YEAR AVERAGE SALE PRICE DAYS ON MARKET
2007 $1,493,765 171
2008 $1,641,525 260
2009 $1,639,633 296
2010 $1,444,898 310
The sales volume decreased dramatically in 2009, but we are seeing a slight increase in the volume and number of transactions in 2010.
YEAR TOTAL SALES VOLUME # OF TRANSACTIONS
2007 $164,314,206 110
2008 $142,812,745 87
2009 $59,026,803 36
2010 $65,020,450 51
While conducting a survey of people whose incomes are greater than $306,000.00 per year and are buyers, United Marketing found that the percentage of those people planning to buy homes rose from 3% in 2008 to 11% currently.
The CEO of the Institute for Luxury Home Marketing, Laurie Moore-Moore, said that while the luxury market is not booming, she is seeing sellers who are more realistic about prices and that are influencing buyers.
“After waiting in the wings, many affluent buyers spent the summer shopping for value and snapping up trophy properties” according to Moore-Moore.
Also helping this portion of the real estate market is the return of jumbo mortgages. These loans are more available than in the past two years as many small and regional banks are offering them once again. Jumbo lending increased 30% in the second quarter of the year when compared to the first quarter.
For the first six months of this year Wells Fargo jumbo lending is up 47.5%, while J.P. Morgan Chase’s jumbos have increased by 146%.
Still, qualifying for these larger loans will be strict. Down payments will range between 20 to 40%, excellent credit scores are mandatory and verification of income is necessary.
Broker, GRI, RRS
Big Sky, Montana
55 Lone Peak Dr, Ste. 3
Big Sky, Montana 59716
Cell: 406-580-0155
Office:406-995-4060
No comments:
Post a Comment