2013 Year End Delaware County Real Estate Market Review
Data from Jim Kouns of Coldwell Banker Lunsford and taken from our local Board of Realtors statistics. — Thanks Jim!
- 2nd year of significant increases in units sold — up 13%
- Local unemployment has fallen with home sales up — all employment levels affect disposable income, population growth, and ultimately housing demand.
- Average sale prices are up 3 years in a row — this is likely just because of a decline in inventory. Fewer people are under water on their homes and the older population will regain confidence.
- 2013 Average price was $94,498, median price $75,050, and 83% were less than $150,000 sale prices. 2013 exceeded 2012 in every distribution of price category.
- Foreclosures have been running between 27-29% of sales since 2008. Average sale price of foreclosures was $37,267. 81% of the foreclosures sold for cash.
- 42% of sales were for cash, up from around 26% in 2005
- Property taxes as a percent of sale price continues to increase. The rise of the typical home in the $90-95k range shows the problem is not due to product mix
- Assessed Values: Though closer than years before, they are still above sale prices, especially since assessments are based on previous year’s sales.
- Problem: Lack of inventory (435 homes as active listings in 2013, down from 849 in 2006). It’s getting worse. No new construction either. More demand and less inventory means higher prices. BUT unless the sellers are leaving the area, they are faced with higher prices and limited choices. This may mean that sellers stay put! We really need new construction!
- With an overall inventory of just over 5 months, we are definitely in a “seller’s market.” Tough spots are $75-100k and over $300k. Hot spots are $100-150k, and then $150-250k. Not bad is below $75k.
- Condos: a difficult market with lack of supply now. Another area needing new construction, but area matters. The popular condo development listings go quick, the worse locations with less amenities and tighter owner rules linger on the market
- New Construction: 16 new permits issues in Delaware County. In the past 6 years, we’ve had 130 total permits — not good. In 2005, there were 110 in that year alone, and in 2004 there were 185. Lack of inventory is choking our market.
- Market Share: Coldwell Banker Lunsford continues to significantly beat the competition in market share — 40%. CBL market share continues to increase in the higher the price ranges — 50% of homes at $200,000+
- Unit Sales up 13%
- Avg Sale Price up 5.4%
- Inventory in months: 5
- Property Taxes: Further from 1% target, rise with sale prices
- Foreclusures: Up slightly at 28%
- New Construction: Down from 24 to 16 permits
Market Challenges for 2014
- Lack of new construction
- Lack of existing house inventory
- Improving local economy
- Increasing house prices
- Rising interest rates
- Tighter lending standards
- Continuing turmoil in Muncie Schools
- Weather — this may really choke unit sale growth