Sales up 48%, Contracts down 30%, Inventory Static
What Are Sales, Contracts And Inventory?
“Contracts”are homes with a mutual agreement on paper, between a willing buyer and a willing seller. They have not fully executed every step necessary for a successful transfer of the deed of a property from one party to the next. They have not closed escrow. Sold signs on yard arms can be quite confusing. According to the Northwest Multiple Listing Service, a “Sold” home is one where the excise tax has been collected and the deed has been conveyed to the new owner and keys are exchanged. To an eager broker, a sold sign stapled to the yard arm means the home has passed inspection and is still waiting to close escrow. It is not an official sale. A brokers sold sign is a right to advertise their prowess whilepending the collection of taxes, disbursement of commissions and conveyance of the deed. A sold sign banner, with a broker’s name on it is still a pending sale and not an officially sold property. It is really just a contract. This is known as pending status. “Inventory” is simply what is “active” or available for sale.
A Brief Acknowledgement:
In the midst of writing a book to share “The Elephant Way” with you all, a dear friend passed away. He was the best Mentor I’ve ever had. He lived and breathed lovingly, and quietly in Trilogy. Our goal was, and is, to serve; he lives on. The book is to share what it’s like to have a broker who cares; one who, with his/her team, shares in the labor and expense of selling your home as if it were their own.
Shortly after our last monthly Hendrick’s martini night out, JHB’s health forced him to resign from the board of writers who would, once again, decide who received the Pulitzer Prize for investigative Journalism; an annual honor for him. He regretted letting anyone down but his peers were not let down; they were saddened by his unexpected passing and they were in shock, as was I. He never said a thing. He was the strong, thoughtful and quiet kind. He was a former college running back; he flew the first Desert Storm casualty with his family back to Arlington on a private jet and wrote about it, he was an Associated Press Alumni and most of all, a loving husband, father and grandfather. Above all, to me, he was my friend. At least now, I have an intro for our book; “To JHB, a man who taught me what little I know about writing and a lot about taking the higher road.” I hope I do you proud. I’ll search for a qualified editor, and hopefully someday soon, there will be a guide, a new level for home owners of what to expect, and demand, from their real estate broker involving personal involvement, as well as financial and physical participation in the successful sale of a home.
Thank you for allowing me to honor an enormously deserving man…..moving on!
May Results For Sold Homes:
17 homes closed escrow during May
Original Asking Price
Days on Market
|Hemlock (Golf Course)||$725,000||$715,000||7|
*Homes in bold; the Elephant’s work. Overall sales averaged 20 days on market with three sales in the $700K and above price range. That’ nearly as many as the first quarter of this year. Could this be a sign that the upper end is loosening up? We’ll see what June brings. The Chelan was an ARCH home and the Orchard was attached at the garage and the living area, making it an artful marketing project. Of course, the Hemlock at $715K sold in two days at an orginal asking price of $725K; it was adjacent to the Hemlock we sold for $779,950 at full price, in less than two weeks. We did not offer to buy the home if it didn’t sell; we knew it would.
A Waterfall In New Homes Under Contract!
As predicted, the typical slowing of homes which would happen in August is a couple months early this year. It’s not hard to see that sales in June will fall short of May; Pending contracts have fallen off. This is a sign of buyer unsureness’. What we see in real estate for the rest of this year is hard to forecast. We’ll do our best. Here’s what is “Pending”:
Days on Market
|Hemlock – Golf Course||$807,000||18|
|Monticello – Last Shea New Build||$895,000||393|
*Home in bold; the Elephant’s work. Notable, are five homes under contract in excess of $700,000 asking prices; as many have sold since January first. Perhaps, summer peak activity in action. Pending sales dropping around 30% from April support my prognostications from last month’s report that we are in for an early slow down this year vs. the typical August tightening. In April, the average days on market were 13, this month it’s twice that at about 26. I think this is more conservatism than the fact that buyers have a bit more inventory allowing careful selection. This stat is adjusted from an average of 52 D.O.M. by removing Shea Home’s final pending sale of the Monticello, which skews the resale figures.
As of May 1st there were 20 homes available for Trilogy’s respective newcomers.. This is just one shy of last month and a handful of new listings have come on since the first of June, all lower price range homes. At April end, the average days on market were 37; by May end, its 44 days. Again, I feel things slowing in a way different from prior years and I’m still trying to put a finger on it. One cloud that doesn’t help is when the world is in conflict. This is the reason stock investing moves to bond investing. It’s a safer place when we’re not sure what Putin or Jong-Un are up to. The good thing is, when bonds get stronger, interest rates for home mortgages go down. Over 40% of Trilogy buyers pay cash, the rest move with good rates. Here’s What’s “For Sale”:
|Model||Asking Price||Days on Market||Elephant thoughts:|
|Chelan – ARCH Home||$318,691||94||Backs to tall wall|
|Chelan||$374,900||32||Backs to a tall wall|
|Townsend||$398,000||45||On a busy street, priced well & should go soon.|
|Union – ARCH Home||$419,000||34||Backs to busy street|
|Vashon||$599,850||79||1,600 sq. ft.|
|Hemlock||$779,000||65||Mtn. View, Built 2010. Price drop from $819K|
|Alder||$779,950||34||Reduced from $825K|
|Cedar||$850,000||31||Golf Course home|
|Maryhill||$899,000||92||Down from $940K|
*Homes in bold; the Elephant’s listings. We report what is available at the first of the month for consistent and accurate reporting. Note: All listings after the first and all currently available Trilogy listings can be found at www.DevinSanfordHomes.com
Get This Monthly Report Sent To Your Inbox
Thanks to all of you who have subscribed to receive this eMarket Report via email. If you have been browsing our website and came across this report, it’s easy to sign up to receive it every month right in your inbox. Just scroll to the top of this page and under the “Trilogy” tab, select “Sign Up for the Trilogy Market Report”
That’s a wrap for May! We’ll see you next month.