Strong(er) Home Sales in July

For the month of July, 2011 there were 70 residential home sales at an average price of $309,586 in the communities in this Lakes Region real estate report. That’s actually a pretty good 14% bump over the 61 sales last July at an average of $262,390. I was getting a little concerned about the lack luster sales over the past several months, but this is certainly an improvement. On a rolling twelve month basis we stand at 743 sales as of 7/31/2011 with an average price of $338,626, a median price of $196,000, and average time on the market of 147 days. We are down a bit when compared to the 12 month period ending 7/31/2010 when we had 772 sales, but the average and median sales price came in a bit higher than the $307,881 and $191,650 values recorded last year. The average time on market coincidentally came in the same at 147 days. As usual, about half the sales for the month of July were under $200,000. But what else can you tell about the homes that sold?

Of the 70 sales for the month of July, 28 properties are clearly vacation type homes and 42 are what you would usually consider year round primary residences. There were 10 homes that sold under $100,000, 3 of those are vacation type homes leaving 7 as year round primary residences (although that could be stretching things a bit by the looks of some of them.) Of the 26 homes that sold between $100,000 and $200,000 there were 5 vacation homes and 20 primary type homes. There were 13 homes sold between $200,000 and $300,000 of which 6 were vacation homes. Between $300,000 and $400,000 there were 10 sales with 4 of those being vacation homes. Of the 11 sales over $400,000, 10 were vacation homes, although I am not quite sure on the largest sale of the month as at $3 million plus you’d think that the buyer would live there year round—but maybe not! I guess these numbers show that (1) vacation home or second home buyers are a big part of our market and (2) they are the ones with money.

Of those 70 sales in July, it appears that just 11 of those sales were bank owned properties. I’m not sure what that means other than it is good to see real people, instead of the banks, finding the buyers. Hopefully, those sellers are staying in the Lakes Region, buying another home, and helping to whittle down our huge inventory a little.



I reported a few weeks ago that one of the more knowledgeable and highly sophisticated agents in our office told me that planting red geraniums around a house would make it sell much quicker. “Guaranteed results” he said! I promised to keep you updated on this new technology and the listing that he had just put on the market. The owner planted geraniums all around his home and the place really looks great! Well, after a little over a month on the market the home has gone under agreement. Is this a coincidence? I think not. There has to be more to this than just luck. Is there something about the color of red geraniums that is irresistible to otherwise unsusceptible and difficult buyers? The agent told me that buyers viewing the home were overcome with a sense of joy and well being just coming into the driveway! I will be initiating a plan, dubbed “Code Red” on one of my new listings this weekend. Will keep you posted…