On July 2011 there was a 4.7 month supply of inventory in North Port. Although modestly higher than the 4.1 supply reported last month, inventory remains low. A 6 month supply is considered “neutral”, i.e., a fairly balanced market between sellers and buyers. As of July 31, 2011, there were 563 homes for sale. In July 31, 2010, there were 844 homes for sale. Therefore, the supply of homes, as of July 31, 2011, is approximately 30% less than it was on July 31, 2010. A total of 120 properties sold in July 2011, of which 116 homes, 96.6% of all closed sales, were for less than $200,000:
- 69 homes sold for less than $100,000, 57.5% of all sales.
- 47 homes sold between $100,000 and $199,999, 39% of all sales.
- 4 homes sold between $200,000 and $310,000, 3.33% of all sales.
The most expensive sale, at $310,000, was at 5404 Waterview Drive in Heron Creek. The home was built in 2006, it is 3,049 square foot, 3 bed, 2 ½ bath, 3 car garage, pool, pavers. The property was a short sale. It was originally listed at $379,900, and then reduced to $299,000. It went under contract within 26 days of the price reduction, and closed 3 months later for $11,000 more than the reduced listing price. It is an example that when properly priced, sales will occur and will often sell for more than anticipated. It is also an indicator of how far prices have fallen at the upper end of the market. This well- appointed home sold for approximately $100 per square foot. The impact of Distressed Properties --- short sale and bank owned --- on North Port remains significant. In July, 33% of all homes for sale were Distressed Properties, unchanged from June. However, in July Distressed Properties sold at a faster pace than in June --- 60% of all July sales were Distressed Properties, whereas, 54% of all June sales were Distressed Properties. The monthly inventory of all Distressed Properties remained the same in July as in June, 2.6 months. Identified below is the average price per square foot, in July, for sales under $200,000:
- Under $100,000: Non-Distressed - $53/sq.ft | Distressed - $45/sq.ft.
- Under $200,000: Non-Distressed - $69/sq ft | Distressed - $62/sq.ft.
Every indication is that over the next 6 months banks will be releasing a great number of Distressed Properties to market. If so, competition will intensify, which should create downward pressure on pricing. For non-cash buyers, if interest rates rise, their cost of financing will increase, depriving them of any real benefit due to lower pricing. Accordingly, whether you are a seller or buyer, there is no benefit in waiting on the sidelines. Over the next few years this may prove to have been the opportune time to buy or sell.
The statistical data contained herein has been extracted from ©Trendgraphix, August 2011.
