Market Conditions - July 27, 2006 by Carla L. Davis
NAR's most recent report indicates that existing-home sales across the nation are slowed. While the Midwest has seen an unchanging market, the Northeast has seen a decline of 3.5 percent. In St. Louis, Missouri, our experts are reporting this neutral market. Experts are reporting prices are up only 3 percent over last year -- slightly less than the historical average. Further into the Midwest, Kansas City, Missouri, has seen a strong market -- with a slight increase in sales (1.5 percent). Homes price appreciation is similar to St. Louis, coming up 4 percent since last year. The average price in the city is $186,000. Notes one expert, "This price growth is mainly the result of new home sales, although even builders are offering incentives. Finished spec homes (new homes) are selling off, and higher costs due to regulation, development costs, material costs, and labor are driving costs upwards for the same model home." And like many markets, inventories have increased by 17 percent, making for a moderate buyers market at this time. In the Northeast, where sales are down 9.8 percent, sellers are still seeing an above average appreciation rate -- up 7.2 percent to $298,000. Just west of Boston one runs into Southborough, Massachusetts. This "upscale suburban community" is seeing an average sales price of $741,000 -- up over $150,000 from last year. But sales appear to have slowed and homes are selling for 95 percent of list. And with more homes on the market, days on market have increased as well, to 123 days. |
