My one and only DREB reader other than my mother, Jim, asked for some UP stats so here you go. Note: All of these numbers apply to homes over $1 million. There are currently 96 homes on the market over $1 million. Of the 46 homes on the market built after 2005 only 2 are resales and the other 44 have never been lived in or purchased.
Eight homes sold in November (only 1 built after 2005) which at that rate would take 11 months to deplete the current inventory on the market.
Now for some sales numbers year-over-year. I used median instead of averages since there can be some huge sales that can throw off the averages.
2005 - No. of homes sold: 108 over $1 million
Median sales price: $1.369 million
Median DOM: 50 days
2006 - No. of homes sold: 122 over $1 million
Median sales price: $1.399 million
Median DOM: 30 days
2007 - No. of homes sold: 146 over $1 million
Median sales price: $1.498 million
Median DOM: 40 days
In 2005, 16 homes built that same year sold. In 2006, 16 homes built that same year sold. Currently in 2007 only 10 homes built this year have sold. (And we know there are at least 7 homes still on the market built in 2006)
So what does this mean for the UP market? The good news is 26% more homes over $1 million have sold this year than in 2005 and the median sales price has increased by 9% since 2005. Some people might be wondering where the double digit price appreciation is? My explanation would be since there is a large number of homes for buyers to choose from and more homes selling each year, the supply is keeping demand down which keeps prices from sky rocketing. Is that a good thing? Probably. Just as long as supply doesn't get so large demand diminishes far enough to start pushing prices down.