The number of homes entering the market in Farmington peaked in 2006 and has been falling pretty quickly ever since. As of the date of this post it doesn’t appear the number of homes entering the market will be leveling off any time soon.
Home Sales & Housing Inventory
The number of homes for sale in Farmington (Housing Inventory) increased pretty quickly from 2005 to 2006 and started to increase more slowly till about 2008. Since then Housing Inventory started to come down and even more quickly in 2009 and 2011.
The Homebuyer Tax Credit did manipulate Housing Inventory to some degree in 2010, but otherwise it resumed it’s natural decent a few months after the Tax Credit expired.
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 due to the difference from date of acceptance and date of closing. Home Sales have been pretty flat since 2008. This isn’t necesarily a bad thing since Housing Inventory is falling, which might be causing a shortage of homes resulting in fewer Homes Sales.
Homes for Sale
Days on the Market
The number of Days on the Market for Homes in Farmington reached a peak in 2009 and has been steadily falling and even more so since 2012.
Our next chart clues us in to what Market Conditions are in Farmington and who it favors.
- 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
The Absorption Rate is trending down at 4.1 Months of Inventory, which is considered a Seller’s Market.
Expectations indicate this trend line is going to continue to decline and the market will get stronger for Sellers.
Median List Price and Median Sale Price typically follow similar patterns, so there isn’t much that it can tell us other than how close to List Price homes are selling for. Currently Homeowners are getting about 90% of their List Price.
So far the Median Sale Price in Farmington has depreciated 19% since 2002, 31% since 2006 appreciated 14% since 2011.
With fewer Homes for Sale in Farmington the Median Sale Price should continue to increase as Housing Inventory becomes a premium.