The last week of each month my article will dive into a year over year comparison of the residential market from the month before. Earlier this year in January I did a similar piece comparing the market in 2018 to that of 2017. This week let’s look back to January 2019 vs January 2018. (I told you I loved statistics.)
We’ll start with single family detached homes. In January of 2018 there were 42 units sold with an average of 85 days on the market. They had an average sales price of $283,198 and a median of $234.750. So how does 2019 compare to that activity? Pretty well, with a caveat.
This past January the number of units dropped by 14.3% to 36 and the days on market increased by 15%. Those two categories you prefer to increase and decrease respectively. However, the average sales price increased a whopping 19.6% to $352,187 and the median went up 6.4% to $250,450. Now before you get all excited and run out for an equity line of credit, there is a major factor we need to consider: The government shutdown. I anticipate we will see a correction next month as the inability to close government backed loans such as USDA, FHA, and VA are most likely skewing these numbers. It will affect the number of units sold as well as the sales prices. Why the prices? Most homes purchased using government programs are in the lower, work force housing price point where as higher priced homes are more likely to be conventional financing.
Now for residential attached homes, that is town houses and condos. In January of 2018 there were 16 units sold with an average of 129 days on market. They sold for an average of $166,079 and a median price of $160,462. Looking to last month our number of units went down to 12 for a drop of 25%, but the days on market also dropped (that’s good) by 33.3% to 86. As for the average sold price that increased by 18.9% to $204,825 and the median went up 17.2% to $193,750.
There may have been some impact on the attached sales by the shutdown as well, but I doubt it was as significant. February will most likely have an increase in closed units, but I would anticipate the average and median prices to have a drop. Looking forward in to March, it is not only the official start of the busy spring market, consumers will most likely be more confident in jumping in to it. On top of the security in government jobs not being stalled the Fed has refrained from increasing the rates which is having a very positive effect on mortgage lending.
I hope you had a fabulous February and are looking forward to a marvelous March! If there are any topics or questions you’d like me to address in the coming weeks please don’t hesitate to let me know!
Melissa Berube, 2019 MBOR President