Market Realities

Published On: September 26, 2011


Information for buyers and sellers:

1.  Buyers are still buying but at lower price levels.  Nationally sales in Aug. '11 were 7.7% higher than a year ago and inventories dropped 3%.  But in Bureau County, homes priced over $160,000 are staying on the market increasingly longer, currently there is a 2+ year supply of homes in that price bracket while there is only about a one year supply of homes below about $70,000.

2.  Interest rates are projected to stay below 4.5% for the next 2 years.

3.  Investors and first time home buyers make up 54% of the market.

4.  The average sales price continues to decrease, in Bureau County it fell below $100,000 in April '11 and on Aug 11 it was $93,371 reflecting the downward pressure on prices overall and the increasing sales of lower priced homes.  Nationally, the median price was $168,300, down 5% from a year ago.

6.  Distressed sales make up 31% of the market.

7.  The market for rental and vacation properties is very attractive to investors right now.

8.  Homes are selling for about 82.2% of their original market price as of Aug 11,'11.

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