A few years ago, I might have titled this post, Third Quarter Sales Report: The Good, the Bad and the Ugly. Then a year later, maybe just, The Ugly. Last year, we took the Good with the Bad and made the best of it. This year we have what I’m finding to be real and interesting data on the housing market here in Chaffee County. I don’t perceive this data as having a binary value, such as good or bad, but rather, it’s meaty. So without further ado, let’s get to the meat.
The end of the third quarter 2013 shows a total of 453 real estate transactions, to the tune of $101,814,949. These numbers are up from the end of the third quarter in 2012, which boasted 390 sales for a total of $89,135,385 in real estate transactions. Thats 63 more sales in the first three quarters of 2013 as compared to 2012, and $12,679,564 more dollars in revenue.
If we look at the third quarter alone, there were 41 more sales in 2013 than in 2012, which generated an additional $9,097,975. Not too shabby. However, if we look at the boom of the real estate market and compare 2007′s numbers to 2013, we find that in the third quarter alone there were 71 more sales in 2007 than 2013, for a single quarter difference of $14,218,886.
There is no doubt that present real estate activity is on the rise, and that’s a good thing, especially, if you’re a Realtor – like me. The increased activity also means more local money being spent locally, and that’s a good thing on a great number of levels. From increased retail sales around town to a resurgence in new home construction, the local economy is getting just the kind of cash influx it needs – but how can we make these numbers more pertinent for the individual buyer and seller?
Numbers for Buyers and Sellers
For myself as a buyer or seller (and I have been both) I’m most interested in what the average cost of a piece of real estate is. While the data we have here lumps all types of transactions, from vacant land, to commercial, to residential, together, I still find it useful. In fact, understanding the average cost of real estate within a historical context can prove a very useful tool when deciding whether it’s time to buy or sell.
- 2007′s average sale = $228,438
- 2008′s average sale = $234,152
- 2009′s average sale = $222,245
- 2010′s average sale = $227,380
- 2011′s average sale = $208,005
- 2012′s average sale = $222,304
- 2013′s average sale at the end of the third quarter = $224,757
2007 really started to put Salida/Chaffee County real estate on the map and the popularity of the area can be seen in the increase in the average sale price between 2007 and 2008. In other words, everyone wanted in on the action – buyers and sellers, alike.
2011 was, you guessed it, The Ugly. After years of marked success, sellers kept prices (and dreams?) high, but buyers were unable to perform at those levels. With the failing economy came failing mortgages, foreclosures, and savvy buyers, like sharks off a reef, were able to take advantage of some of the best real estate deals in ages.
I think what’s important to keep in mind is that neither 2007, nor 2011, are the norm. Rather, they’re opposite ends of the same spectrum. Who know’s what the average sale will be once 2013 closes out, but we can see that prices appear to be creeping their way back up a bit, and the increased activity – from lookers to buyers – leads me to believe that we are once again approaching a healthy real estate economy. Sellers have, for the most part, let go of the pipe dream prices of years past, and buyers who have been on deck waiting for a time to act are able to take advantage of wide selection of properties while mortgage rates remain relatively low.
It will be interesting to see what future real estate trends bring, but after years of starving, it sure feels good to have a piece of meat to chew on!