I agree that if you look at quarterly behavior for the entire zip code you get a drop in the last 6 months. sales from 2 years ago are simply not relevant. Seeing a trend is nice but does not help establish value. So when establishing market value I only look at 6 month SOLD numbers.
When you get specific you can find very different results. Pembroke on the rise, Apple Creek on the decline, for example. So the best thing to do is to get as local as popssible and crunch the numbers.
Avg Sale Prices Feb-Aug 2008 = $150,723
Avg Sale Prices Feb-Aug 2011 = $129,073
There really hasn't been a better time to buy and get a great deal than right now, especially with interest rates still at all time lows. Home prices will rise again. If you are ready to make a smart decision and buy now, call me today!
Justin Werner, CRS, ABR, CDPE
Certified Residential Specialist
Accredited Buyer Representative
Certified Distressed Property Expert
210-367-4757 http://www.AlamoCityHomeInfo.com http://www.JustinWerner.com
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Depreciation rate on the other hand is very much in existance.
So...you all are saying buy, buy, buy!!!
I would think you might say instead caution, caution, caution!
In looking at the actual market statistics for the zip code of 78240.. The numbers really look more like this:
Jan 1, 2009 – 12/31/2009 - Average Sales Price was $146,100 – 443 Homes Sold (Single Family Detached)
Jan 1, 2010 – 12/31/2010 – Average Sales Price was $144,247 – 372 Homes Sold (Single Family Detached)
Jan 1, 2011 – 8/9/2011 – Average Sales Price is currently $135,030 – 217 homes sold year to date (Single Family Detached
So.. From 2009 to 2010 – We saw a 1.268% drop in value
From 2010 to 2011 – We are seeing a 6.3897% drop in value (A nice average price drop of $8628.01)
We have also seen interest rates drop to historical lows. The average days on the market for a home went from 101 days in 2009 to 112 days on the market now. Homes are selling just as fast, but now at a lower price.
I think this is because the buyer market, as a whole have recognized that now is the time to buy… Those who wait for the market to recover will lose on average of $8600 give or take just for waiting.. and if interest rates recover, this will equate to 10s of thousands of dollars over the life of the loan, just for “Holding off” - Not a good time to wait.. Buy when the market is down… not when things look great!
Hope this info helps for whatever purpose you needed it for. If you need anything else… don’t hesitate to shoot me an e-mail.
Jason C Campbell
Realtor / Mortgage Loan Officer
Keller Williams Realty
If you are buying a HOME, your first concern is the rightness of that house as a HOME!
If you are buying an investment, the combination of the Prices and the Interest Rates has never been better.
If you bought now, your beginning appreciation rate will be ZERO.
Here are some of the factor's to consider when considering how well a property may appreciate.
Location in a community - Being close to schools, work and amenities like shopping, restaurants and entertainment is important to many families and will greatly influence home values. So when it comes to keeping their value, these communities usually appreciate much more reliably than areas lacking key features.
Recent home sales - You should receive facts and figures on the recent real estate sales in the neighborhoods that you'd like to live in from your agent. You'll want to learn figures like time on market and listing price versus selling price.
History of appreciation - In the last 5 to 10 years, have home prices increased or decreased? Does location or affordability affect how desirable the community is thought of as?
Local economy - Is there a nice mixture of jobs in an area, or does it rely upon just one industry? Have businesses moved into or away from an area? Are local companies hiring? All these play a role.