August Market Watch

Monthly Market Watch forPierce CountyAn overview of what is happeningin the Pierce Countyreal estate market(using August 2011 statistics)

Provided by Keller Williams Realty Puyallup – Statistics from NWMLS

Report overview:This report includes MLS data for thepast 24 months in Pierce County only

as provided by the NWMLS and BrokerMetrics.

Please note that searches fluctuate daily when running these reports; these figures were obtained on 9/12/11.

A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying – blended statistics will not be as accurate as a

more detailed report that your real estate professional can provide to help you with your decision making.

Provided by Keller Williams Realty Puyallup – Statistics from August 2011 MLS

Clo

se

d S

ale

sP

rovid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

Closed Sales Report Analysis:

Sellers:The month of August saw the number of closed sales increase to 810 units. On

average, the number of closed units in Pierce County has been increasing month over month for all of 2011. As inventory continues to remain below 5 months, it will be

important to watch this trend to see how buyers are responding to their opportunities to buy homes with great terms and affordable prices.

Buyers:For buyers, this means that more buyers closed on a home last month than in the prior

month. Buyer activity remains high, as buyers are returning to the market and are very committed to purchasing homes. Showing that more buyers are entering the market

and reducing the inventory of homes for sale. This means there may be more competition for the most desirable homes.


Dis

tre

sse

d S

ale

s

Pro

vid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

Provided by Keller Williams Realty Professional Partners – Statistics from February 2011 MLS

67%

Non Distressed

22%

Short Sale

11%

REO

Distressed Sales Analysis (For Sale): A bank owned/foreclosure home is one that the seller no longer

owns – it has been taken over by the lender(s) who had a note on the home. Short sales are homes where the seller is negotiating with the bank to “forgive” a portion of the debt in order to avoid

foreclosure.

August saw less than a 1% shift between the percentages of bank owned, short sales, and traditional homes sales. Sellers and

buyers need to monitor this trend to see how the banks respond in 2011 AND how they treat the shadow inventory that currently

exists but has not yet been made available to buyers.


Dis

tre

sse

d S

ale

s

Pro

vid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

Provided by Keller Williams Realty Professional Partners – Statistics from February 2011 MLS

54%

Non Distressed

37%

REO

8%

Short Sale

Distressed Sales Analysis (Sold):

July statistics saw a decrease in the percentage of short sales (down 3%), a increase in the percentage of REO (up 3%),

while Traditional home sale remained the same as last month.

When comparing distressed to non distressed properties the comparison between For Sale and Sold will change greatly.

Carefully monitor this trend to see how banks respond in 2011.


Pe

nd

ing

Sa

les

Pro

vid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

Pending Sales Report Analysis:

Sellers:August saw the highest number of pending homes since April of last year. This increase is an indication that buyers are being successful in finding a home and then being the winning contract on that particular property. Sellers should monitor this information to see what how the increase in pending homes sales will effect the average home price

along with list to sale price ratio.

Buyers:Buyers are definitely listening to the good news… they are hearing about great prices,

on homes that offer the amenities they want. With interest rates remaining low, affordability is at an all time high, and buyers are taking action. They are not waiting to see what happens in the future because they know any shift could cause them to pay

even more in the long run.


Ave

rag

e S

ale

s P

rice

Pro

vid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

Average Sold Price Analysis

Sellers:After seeing the first significant increase in the home prices last month, August has seen another decrease in average sold price. In August, the average home in pierce county

sold for $220,169. Sellers need to carefully monitor this trend in order to remain competitive AND to make sure that banks considering the approval of a short sale are

aware of this trend.

Buyers:The average buyer paid LESS for a home in August than in the prior month. The

increased number of homes that moved to pending status will be a statistic to continue to watch … will this increased activity have an impact on home prices? No one knows

when this trend will change, and we won’t know that the trend has reversed until several months after the recovery. For that reason, it is more important than ever that

you are consulting with a real estate professional to watch this trend and determine what price is appropriate for a home based on what the seller is asking


Ave

rag

e D

ays

on

Ma

rke

tP

rovid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

Average Days on Market Analysis

Sellers:This statistic means that the average homes is taking 83 days to receive a mutually accepted offer. This is about 10% bellow the past 2 year average of 91 days. For

sellers, this will be a statistic to continue to watch as this shows how long buyers are taking to preview homes before making an offer.

Buyers:Buyers need to be aware of this number because it is an indicator of how long sellers are having to wait to go under contract. The higher the number, the more control a

buyer normally has. Even if we have an addition of homes to the market via foreclosures, buyers need to understand that competition for great homes continues to

remain very high, especially in the lower price ranges. The importance of having a reliable lender AND real estate professional to guide you through this process has never

been more important.


Ave

rag

e L

ist

to

Sa

les P

rice

Ra

tio

Pro

vid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

List to Sale Price Ratio AnalysisSellers:

The month of August saw a 1% increase in the list to sales price ratio. This statistic reveals how close the actual sales price was to the original list price on a home. It is

important to note that distressed properties can impact this number quite a bit. Continue to watch this trend, as it will impact how homes should be priced in the

current market in order to appeal to the buyers.

Buyers:Buyers need to pay careful attention. This increase means that, overall, buyers have a

little less buying power than they did in the month of July. As demand on lower priced/highly desirable properties continues to increase, in some cases buyers may

have to pay at or even above list price. Make sure your real estate professional helps you understand the competitiveness of the list price of the home you are wanting to

purchase.


Mo

nth

ly E

xp

ire

d

Lis

tin

gs

Pro

vid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

Expired Listings Analysis

Sellers:The number of expired listings in the month of August saw in increase over the month of

July. During the month of August, 640 home sellers let there listing contract expire and their home come off of the market without selling. Serious sellers need to pay attention to all of the numbers this month … days on the market, the average sales price, and homes expiring

due to lack of buyer interest means sellers need to pay very careful attention to how homes are priced so they can be the first choice of buyers.

Buyers:For buyers, be aware that there are 640 fewer homes to consider. This means buyers will

have to be more patient with homes still active AND be prepared to act quickly on available homes. Continue to watch this trend, as this, combined with price, days on market, and list

to sales price ratio are an important indicator of what buyers need to do in order to be successful in closing on the home of their dreams.


INVENTORY OVERVIEWFollowing is an overview of what is happening with the

inventory of homes currently available in Pierce County and

the MLS.


Ne

w L

isti

ng

sP

rovid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

New Listings Analysis

Sellers:August saw a slight decrease in the number of new homes entering the market. This statistic means there were 1,348 NEW properties available to buyers – they could be traditional sales OR they could be distressed sales. For sellers, a competitive original

asking price is greatly important to successfully selling. It is important that you monitor the average sales price along with talking with your real estate professional about local

home sales in your neighborhood.

Buyers:This is important news for buyers, as it means there has been an decrease in new

properties available for buyers to choose from. It is very important that you continue to spend time with and listen to your real estate professional to develop your strategy for

succeeding in a market that is constantly changing. Be prepared: a change in the number of new listings could be great news if there are more homes from which to

choose OR it could present challenges if the inventory continues to decrease.


Acti

ve

Lis

tin

gs

Pro

vid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

Active Listings Analysis

Sellers:The total number of active listings is continuing to show signs of stability. We have been averaging around 7,000 active listings for the entire year. The month of August ended with 7,021 available homes on the market. The stability in active listings along with an increase in both average sold price and pending sales shows signs of overall market

strength improving. For potential home sellers, now could be a good time to enter the market.

Buyers:The uptick in pending home sales along with similar numbers in active listings in August

means that inventory is decreasing. This means that buyers are going to have less homes to choose from and will need to act quickly when they find a home of their liking.

In lower price ranges, competition for desirable homes is high. As always, market activity is local and should be researched with your real estate professional to determine

the activity and desirability of homes that are of interest to you.


Mo

nth

s o

f In

ve

nto

ry

Pro

vid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

Months of Inventory Analysis:(This report has been generated by taking the number of active

listings and dividing it by SALES for the past month)

Sellers:Since January, the average months of inventory in Pierce County has been bellow the

national average. With the month of August ending at 5 months of inventory. This statistic means we are in what is called a “balanced market” that is identified when this statistic near

6 months of inventory. This means sellers have a little more competition for buyers. It continues to be very important for you and your real estate professional to monitor this

number so that you can make sure your home is priced accordingly in order to become the choice of the buyer pool.

Buyers:Buyers will want to seriously monitor this, as it indicates a shift away from a buyers market.–a balanced market traditionally gives equal control to the sellers and buyers. However, the type of market will vary from price range to price range and even area to area. Work with

your real estate professional to make sure you understandthe type of market you are in.


Su

mm

ary

C

om

me

nts

Pro

vid

ed

by K

ell

er

Wil

lia

ms

Re

alt

y P

uya

llu

p –

Sta

tis

tic

s f

rom

Au

gu

st

20

11

ML

S

IMPORTANT INFORMATION:

Although these reports are beneficial in understanding the general market in Pierce County,

it is essential that you meet withyour real estate professional to study these same figures in your area, as statistics will vary from

neighborhood to neighborhood.

As you make decisions related to the purchase or sale of a home, it is important that you understand how the current real estate trends will impact your decisions. Your real estate professional is available

to help you monitor and interpret them to make sure that you are taking advantage of the current market

whether you are selling OR buying.

Documents

August Market Watch