The number of homes entering the market in Blaine peaked in 2007 and has been on a slow decline since then. The number of homes entering the market may have been propped up by the Homebuyer Tax Credit in 2010, but has been falling since 2011 began.
With fewer homes entering the market there will be less competition among homeowners in Blaine resulting in a shortage of Homes for Sale and rising Home Prices.
Home Sales & Housing Inventory
The number of homes for sale in Blaine (Housing Inventory) increased pretty quickly till about the first half of 2008 and started to trail off over the next few years. The Homebuyer Tax Credit may have leveled off Housing Inventory for a time when it was in place, but resumed it’s decline several months after the Tax Credit Expiation. Housing Inventory has been falling pretty quickly since mid 2011. Fewer homes entering the market is one contributor to fewer homes for sale as well as rising Home Sales, which has been pretty flat for the last couple of years.
If Housing Inventory continues to fall this may result in fewer Home Sales, which isn’t necessarily a bad thing since fewer homes for sale will push Home Prices up.
Pending Home Sales and Closed Home Sales follow each other pretty closely in most cases. Closed Sales are usually a month or two behind Pending Home Sales. In this case they’re neck and neck. Home Sales have been rising steadily since Spring 2011 and may be showing some early signs of leveling off.
Like I mentioned earlier, fewer Homes Sales isn’t necessarily a bad thing since it’s also an indication of Fewer Homes for Sale if Home Prices are increasing.
Homes for Sale
Our next chart clues us in to what Market Conditions are in Blaine.
In any given month a market can be a Buyer’s, Balanced or Seller’s. However, to get a good feel for a market we want to take a look at the trend line.
In this case we can see that the Months of Inventory jumps quite a bit, which really don’t help us determine what the Market Conditions are, but if we look at the trend line we see that Blaine as heeb transitioning from a Buyer’s Market to a Seller’s Market.
The Absorption Rate is trending down at 3.5 Months of Inventory, which is considered a Seller’s Market.
- Buyer’s Market = More than 7 Months of Inventory
- Balanced Market = 5 – 7 Months of Inventory
- Seller’s Market = Less than 5 Months of Inventory
Expectations indicate this trend line is starting to level off some and a Seller’s Market may be around for a while.
Median List Price and Median Sale Price follow similar patterns, so there isn’t much that it can tell us other than how close to List Price home are selling for. In this case Home Sellers are receiving close to 90% of their List Price. With Home Prices rising the Percentage of List Price may start to rise.
So far the Median Sale Price in Blaine has depreciated 11% since 2002, 31% since 2006 and appreciated 3% since 2011.
With fewer Homes for Sale in Blaine the Median Sale Price should continue to increase as Housing Inventory become a premium.
[gravityform id="13" name="To find out what your home is worth in the current market fill out the form below"]