Area Real Estate Sales Up 12% in May

  While area real estate sales dipped in May from April's near record high, sales remained very strong throughout the month. Absent however were the number of sales in the upper price ranges suggesting those with money are holding onto it.

  Sales activity reported through the MLS® system of the Georgian Triangle Association of REALTORS® in May posted a gain of 12% in terms of unit sales while dollar revenue for the month increased a more modest 9%. Sales in the lower price ranges remain very strong and from my perspective it is encouraging to see that average real estate purchasers are more confident with their finances and purchasing power than they have been in some time. Sales below $200,000 during the month were essentially unchanged from May 2011 however in the $200,000 to $349,999 price range units sales were up 20% for the month. No sales above $800,000 in our entire MLS® trading area were reported in May which is somewhat unusual and it’s not because of an absence of upper end listings.

  Year-to-date MLS® sales now total 811 properties, up 17% from the first 5 months of 2011. MLS® dollar sales now total $233.9 million for the year, an increase of 11% from last year. For the year, residential sales below $200,000 are up 12% while sale in the $200,000 to $349,999 and $350,000 to $499,999 price ranges were up 22% and 14% respectively. While sales above $1 million are running at the same pace as 2011 with 13 properties sold year-to-date, to date there has only been one sales over $1.5 million whereas last year there were 3 MLS® sales reported above $1.5 million plus 1 additional non-MLS® sale for a total of 4. Year-to-date sales in 2011 between $500,000 and $799,999 total 59 properties, an increase of 25% from one year ago. Between $800,000 and $1 million however sales are down 50% with 5 properties selling this year compared to 10 in 2011.

  It would appear that market conditions overall will remain strong through the balance of 2012 and may in fact increase as we get closer to another ski season. Whether we see a rebound in upper-end home sales in the months ahead remains to be seen.