Jul 15, 2015
We had a really interesting first half of 2015 in Mountain Lakes. First, lets look at the raw numbers:
What does this tell us? First, the volume of homes sales. This is down from prior years, but a healthy backlog of homes under contract may bring those numbers back in line with 2014 by the end of August. Clearly an issue worth watching over the next few months.
Some high-priced homes (headlined by 68 Crestview – sold by the Cassidy Realty Team at $2,490,000) drove the increase in the average home price.
Now lets look at the distribution in home prices. Over the past couple years the Mountain Lakes market has typically been split about equally with a third each to homes sold under $700,000, homes between $700,000 and $999,999, and homes over $1,000,000. For ease lets call these Small, Medium and Large.
If you peel back the numbers, the surprising trend is the growth in homes with sale prices under $700,000, the Small segment of the market. So far this year this segment has 43% of the transactions, and looking at the homes under contract but not closed, this trend continues. This has driven the pretty significant decrease in the Median Sale Price for this year.
The Large segment has retained its market share at about a third, so it is the Medium segment that has taken a hit, dropping to 25% of the market for the first half of 2015.
These trends have created a sellers market for nice homes in the Small segment and, to some extent, a buyers market in the Middle segment.
We will watch all these trends with great interest over the next couple months.