Time for our 2019 Mid-Year Market Review! July is a particularly good time to review our market in Rim County, because not only is it mid-year, but its also mid-summer which is the middle of our traditional “Buying Season.” Following is my interpretation of statistics for the Payson area.
Overall, in the last month we have seen an almost 20% increase in new listings, which is normal for this time of the year, the active listing inventory continues to grow week after week. This will continue until it reaches a peak most likely in August. Additionally, there is a slight increase in the absorption rate as well as days on market – all signs of a more stabilized real estate market compared to last year.
In the past month, the active listing inventory for $500,000 + homes increased by an outstanding 77%, and is up almost 17% over last year. However, sales of luxury homes are only slightly down over last year, by roughly 6%. As we know, higher priced properties are more vulnerable in a shifting real estate market so by watching the sale of luxury homes we can get an indication of where our real estate market is heading through the remainder of the year.
Over the years my Team has established ourselves as the experts on luxury home sales in Rim Country, the last several years we have sold approximately 50% of all luxury home sales in Rim Country. So far, year-to-date we have sold more than 50% of the total luxury sales not only in Chaparral Pines and The Rim Golf Club, but all of Rim Country!
Number of Listings: Typical for our market, total listing inventory in the MLS was lowest in January and February. We have since seen a dramatic spike in inventory the last 60 days which has caused a softening of prices in certain ranges where there is more competition.
Listing Price v Sold Price: While the sold price is normally lower than the list price for a given home, it is interesting to see that average price of a new home coming on the market is pricing below listings that have been active on the market. This supports the adage that we all know, sellers who price their homes accurately from the start will avoid price reductions and sell their house for more money.
Sold to List Ratio: The Sold to List price comparison ratio has been up and down throughout the last 6 months. Most recently peaking in May at a little over 95% — meaning on average, sellers are obtaining 95% of list price when they sale. However, April was down slightly to just over 92%. Expect to see a spike again as we approach the end of summer and enter Fourth Quarter.
Absorption Rate: Absorption is the rate at which available homes are sold in a specific market during a given time period. We have seen only a slight decrease in our absorption rate, an increase of 2.55% over last year at this time, up to 6.43 months from 6.27 months at this time last year. Again, a very good sign for our real estate market as homes are still selling at a quick pace.
Days on Market: Average days on market is up slightly at 4.26% from this month last year, the average days on market YTD is 98 days, last year it was 94.
Bottom Line: In looking at this data we are seeing a very healthy real estate market and if a house is priced within market value, its selling. While there are indications of some vulnerability in the luxury market, my Team and I are continuing to maximize values for our clients and represent the majority of luxury homes sold in Rim Country. For more data on the current Rim Country real estate market, please visit my website at www.AtTheRim.com or call 928.978.8090.