2012 is now upon us. We are actually selling more homes than last year during the same time, but for significantly less than last year. As bad as foreclosures have been, they have become worse. Last year just over 33% of all home sales were foreclosures. Last year it ran nearly half of all sales. Just look at the number of foreclosure sales for the past years:
2009................................................68 Foreclosures
2010...............................................141Foreclosures
2011...............................................196 Foreclosures
2012...............................................11 Foreclosures (thru 1/28/2012)
Home prices have come down over the past few years and also the average price of land has fallen. Look at these statistics:
2008 Avg price of a home sold..............$167,354
2009 ....................................................$167,253
2010.....................................................$136,390
2011.....................................................$137,534
2012.....................................................$100,720 (Thru 1/28/2012)
2008 Average price per acre of land......$22,344
2009.....................................................$13,099
2010.....................................................$11,681
2011.....................................................$ 6,950
2012.....................................................$ 8,220 (Thru 1/28/2012)
Price is the number ONE factor in selling your property. Almost everyone that comes into the office wants to look at foreclosures first, then short sales and then the listings. When they make offers, they price all units, whether sold as a foreclosure or not, at foreclosure pricing. It's a strange paradox this year. It sure seems like we have finally turned the corner and seen an uptick in sales. Lots of showings and new listings coming on the market. Interest rates are low, so it's a great time for buyers.
Franklin is a unique market in that we do not have the large industrial or commercial base to bring jobs to town. Our market here is highly dependent on the retiree and second home market. The primary sources of these buyers are from Florida and nearby Atlanta, Georgia. When they are down, we are down. We wanted to give you some statistics about our area to be aware of our market today. We will try to update this as much as possible. The first section is for homes only.
2007 Market (Total Year)
Sold listings..................................................487
2008 Market (Total Year)
Sold listings..................................................326
2009 Market (Total Year)
Sold listings.................................................320
2010 Market (Total Year)
Sold listings.................................................390
2011 Market (Total Year)
Sold listings.................................................460
2012 Market (1/28/2012)
Sold listings....................................................21
source: National Association of Realtors report and Navica MLS as of 1/28/2012
Residential: There are 662 active home listings in the Franklin MLS
In 2010, 390 homes sold at an average of just $85 per square foot. In 2011 that figure was $76. That figure is now running $66 per square foot. Foreclosures and short sales represent just over 5% of our inventory, but almost 57% of all sales. During 2010 they represented just over 33% of all sales and in 2011 it was 39%. They are impacting our market. The appraisers feel that we may have 2 more years of a slumping market before we start to have a turn around. Then, we won't know how long it will stay bottomed out before it starts to go back up and if so, how quickly. We always tell people there are three "R's" - Reduce your price and sell, Rent your home or Remain in your home and wait. If you don't have to sell, think about the market we are in today.
Land - We now have 718 land listings in the Franklin MLS.
It is difficult to get a loan on a land purchase. Most are bought cash (85%) or as part of a construction deal with a builder. During 2010 there were 145 land sales. Land sold for $11,681 per acre at that time. In 2011 there were 116 land sales and land prices dropped to $6,950 per acre. As of today it is running about $8,220 per acre. Foreclosures in 2011 ran at 35% of all sales. So far this year it is running at 71% of all sales.
Foreclosures?
We all see the press talking about all the foreclosures out there in the current market now that the "robo signing" problem is behind us. Even now, foreclosures are making the news everyday. Now with all 50 states investigating foreclosures, the problems with GMAC, Bank of America and JP Morgan, it will slow down for a while. According to the news outlets, over 3,000 homes a day go into foreclosure, with some 5 million waiting to be processed. This is a serious issue that will take some time to get resolved. According to the "experts", the next big wave of foreclosures is still coming. We did not get in this mess quickly and we won't get out of it quickly either. The news organizations estimate that it may be 4-5 years before we get back to the old prices and that there are over 3 million foreclosures coming this year alone.
Contact me for more information on the market in Franklin. Just remember, God is in charge, not us.