Venetian Golf & River Club – 2011 State of the Market Report

For all properties available for sale in 2011, there were fewer homes available for sale and less sold than in 2010.  It was due to a significant drop in Short Sales and Bank Owned Properties (“Distressed Properties”).  However, Non-Distressed Properties had a significant increase in the number of homes available for sale and the amount sold.  The reason Non-Distressed Properties outperformed Distressed Properties is likely because the average square foot sold price of Non-Distressed Properties decreased, whereas, it increased for Distressed Properties. Regarding larger homes, over 2,500 square feet, there were fewer homes available for sale for both Distressed and Non-Distressed Properties.  However, whereas there was a substantial drop in sold Distressed Properties (62.5% - 3 in 2011, 8 in 2010), there was a material jump in sold Non-Distressed Properties (57% increase – 7 in 2011, 3 in 2010).  Interestingly, compared to 2010, in 2011 the Median Sold Price for Non-Distressed Properties increased 5.1%; it dropped 21.8% for Distressed Properties.  Currently, there is only an 8 month supply of homes for sale, based on closed sales, for this time of year.  That harbors well as we engage the prime selling season.  A 6 month inventory is considered a market in balance between sellers and buyers.  I make special note of the impact of selling during the “prime selling season”, as no homes over 2,500 square feet sold between July 1 and December 31, 2011. All Properties:

• For Sale - Decreased 7% in 2011; on average 40 available on any given day in 2011, 43 in 2010.
• Sold - Decreased 11.3% in 2011; 61 sold in 2011, 68 in 2010.
• Average Sold Price per Square Foot - Increased 3.6% in 2011; $129/sq. ft. in 2011, $124/ sq. ft. in 2010.
• Average Sold Price – Increased 6.3% in 2011; $255,000 in 2011, $240,000 in 2010.
• Median Sold Price – Increased 12.2% in 2011; $230,000 in 2011, $205,000 in 2010.
• Average Active List Price – Decreased 6.5%; $330,000 in 2011, $353,000 in 2010.
• Difference Between Sold & Original List Price - Decreased 7% in 2011; 14% spread in 2011, 20% in 2010.
• Difference Between Sold Price & Final List Price – Increased 1.1% in 2011; 7% spread in 2011, 8% in 2010.
• Days on the Market - Decreased 5.6%; 135 days in 2011, 143 days in 2010.
• Months of Inventory (Based on Closed Sales) – Increased 11.6% in 2011; 8 months in 2011, 7.2 in 2010.

  All Properties: 2,500 sq. ft. & Up

• For Sale – Decreased 27.3% in 2011; on average 8 available on any given day in 2011, 11 in 2010.
• Sold – Decreased 18.2% in 2011; 9 sold in 2011, 11 in 2010.

NOTE: All 2011 sales were in the first half of the year.

• Average Sold Price per Square Foot – Increased 11.3% in 2011; $163/sq. ft. in 2011, $147/ sq. ft. in 2010.
• Average Sold Price – Decreased 3.5% in 2011; $435,000 in 2011, $451,000 in 2010.
• Median Sold Price – Decreased 3.1% in 2011; $436,000 in 2011, $450,000 in 2010.
• Average Active List Price – Increased 3.7%; $590,000 in 2011, $569,000 in 2010.
• Difference Between Sold & Original List Price - Decreased 2.4% in 2011; 13% spread in 2011, 15% in 2010.
• % Difference Between Sold & Final List Price – Increased 1.1% in 2011; 8% spread in 2011; 7% in 2010.
• Days on the Market: Increased 3.3%; 124 days in 2011, 120 days in 2010.
• Months of Inventory (Based on Closed Sales) – Decreased 27.3% in 2011; 8 months in 2011, 11 in 2010.

  REO/Short Sale:

• For Sale – Decreased 33.3% in 2011; on average 8 available on any given day in 2011, 12 in 2010.
• Sold – Decreased 48.8% in 2011; 20 sold in 2011, 39 in 2010.
• Average Sold Price per Square Foot – Increased 1.1% in 2011; $113/sq. ft. in 2011, $112/ sq. ft. in 2010.
• Average Sold Price – Increased 1.8% in 2011; $226,000 in 2011, $222,000 in 2010.
• Median Sold Price – Increased 11.8% in 2011; $218,000 in 2011, $195,000 in 2010.
• Average Active List Price – Decreased 9.2%; $247,000 in 2011, $272,000 in 2010.
• Difference Between Sold & Original List Price – Decreased 6.3%% in 2011; 16% spread 2011, 21% in 2010.
• Difference Between Sold & Final List Price –Decreased 2.2% in 2011; 5% spread in 2011, 7% in 2010.
• Days on the Market: No change in 2011; 173 days in 2011, 173 days in 2010.
• Months of Inventory (Based on Closed Sales) – No change in 2011; 4 months in 2011, 4 in 2010.

  REO/Short Sale: 2,500 sq. ft. & Up

• For Sale – Decreased 50% in 2011; on average 1 available on any given day in 2011, 2 in 2010.
• Sold – Decreased 62.5% in 2011; 3 sold in 2011, 8 in 2010.
• Average Sold Price per Square Foot – Down 4% in 2011; $135/sq. ft. in 2011, $140/ sq. ft. in 2010.
• Average Sold Price – Decreased 21.8% in 2011; $352,000 in 2011, $450,000 in 2010.
• Median Sold Price – Decreased 21.8% in 2011; $352,000 in 2011, $450,000 in 2010.
• Average Active List Price – Decreased 33%; $246,000 in 2011, $367,000 in 2010.
• Difference Between Sold & Original List Price --- No change in 2011; 16% spread in 2011, 16% in 2010.
• Difference Between Sold & Final List Price – Increased 3.2% in 2011; 10% spread in 2011, 3% in 2010.
• Days on the Market: Increased 16.8% in 2011; 167 days in 2011, 143 days in 2010.
• Months of Inventory (Based on Closed Sales) – Decreased 50% in 2011; 1 month in 2011, 2 in 2010.

  Non REO/Short Sale:

• For Sale – Increased 6.5% in 2011; on average 33 available on any given day in 2011, 31 in 2010.
• Sold – Increased 30% in 2011 vs. 2010; 41 sold in 2011, 29 in 2010.
• Average Sold Price per Square Foot – Decreased 2.1% in 2011; $137/sq. ft. in 2011, $140/ sq. ft. in 2010.
• Average Sold Price – Increased 2.3% in 2011; $270,000 in 2011, $264,000 in 2010.
• Median Sold Price – Increased 0.8% in 2011; $252,000 in 2011, $250,000 in 2010.
• Average Active List Price – Decreased 12.3%; $343,000 in 2011, $391,000 in 2010.
• Difference Between Sold & Original List Price --- Increased 6%  in 2011; 12% spread in 201, 17% in 2010.
• Difference Between Sold & Final List Price – Increased 1.1% in 2011; 8% spread in 2011; 9% in 2010.
• Days on the Market: Increased 13.6% in 2011; 117 days in 2011, 103 days in 2010.
• Months of Inventory (Based on Closed Sales) – Decreased 29% in 2011; 11 months in 2011, 15.5 in 2010.

  Non REO/Short Sale: 2,500 sq. ft. & Up

• For Sale – Decreased 30% in 2011; on average 7 available on any given day in 2011, 10 in 2010.
• Sold – Increased 57.1% in 2011; 7 sold homes in 2011, 3 in 2010.

NOTE: All 2011 sales in first half of the year.

• Average Sold Price per Square Foot – Increased 9.8% in 2011; $178/sq. ft. in 2011, $162/sq. ft. in 2010.
• Average Sold Price – Increased 5.1% in 2011; $477,000 in 2011, $454,000 in 2010.
• Median Sold Price – Increased 5.1% in 2011; $477,000 in 2011, $454,000 in 2010.
• Average Active List Price – Increased 3.4% in 2011; $617,000 in 2011, $597,000 in 2010.
• Difference Between Sold & Original List Price - Decreased 1.1% in 2011; 11% spread in 2011, 10% in 2010.
• Difference Between Sold & Final List Price – Decreased 2.1% in 2011; 7% spread in 2011; 5% in 2010.
• Days on the Market: Increased77.6% in 2011; 103 days in 2011, 58 days in 2010.
• Months of Inventory (Based on Closed Sales) – Decreased 30% in 2011; 7 months in 2011, 10 in 2010.

  Buyers are coming in with a very sharp pencil.  They’ve done their homework.  They’ve been educated by their agents. They know value.  They won’t even look at a property unless they feel the list price is close to what they want to pay --- which has proven to be no more than 10%.  Today, the housing market can be compared to shopping for a car or a major appliance.  Much of the negotiations have been taken away by the internet and comparative shopping sites.  If you have bought a car in the past year or so, you know there is very little negotiation, because all of the information is known and available.  There are no secrets. The same is carrying over to the housing market.  The difference is that a home is not a commodity, no two homes are alike.  That’s where the experience of an agent who knows the area and the competition is invaluable. And, the negotiation skills to sharpen that pencil and hone that price to where it should be.