Preliminary numbers indicate 1126 new contracts for May 2011 versus 726 for May 0f 2010. This represents a 55% increase in sales over last year. The primary difference was the tax credit that pulled sales forward last year.
This is consistent with the leveling and stabilizing of the market, that I have been discussing this year. The year to date contracts are virtually identical for the first five months of 2011 versus 2010. And generally reflect a more normal seasonal curve rather than the tax credit distorted curve of the previous 2 years.
There are 2 areas of concern. First, an 8% decrease in average price per square foot that is probably caused more by the fact that we are selling an older home on average. Second, flat or fewer (will take several days to get all new contracts in MLS) new contracts for May versus April. Historically, new contracts accelerate through May reflected in fewer closings as the summer goes on. This would seem to indicate that sales slowed slightly ahead of schedule.
I’ll update in a few days when the information in the MLS is more complete.
No comments:
Post a Comment