Prices Rebound During First Half of 2013- Sales Volume Up Over Nearly 50%
Observing data for mid-year 2013, an increase in the number of transactions of nearly 50% was noted in comparison to 2012 data from this time period. This gain came in combination with an average price measure that remained essentially level. The result of these indications was an increase in dollar volume of sales of over 40%. Closer observation of the underlying data indicates that appearance of level (or slightly decreasing) values is the result of a marked increase in the number of sales in the more moderately-priced segments of the market (which diluted aggregate numbers giving the appearance of a level price trend). This observation is further corroborated by the comparison of sales and re-sales of similar properties, which show that prices experienced upward pressure during the first half of this year. This price rebound is likely the result of several market forces. However, the predominant forces which are contributory to this trend are hypothesized to be a market fear that favorable financing terms will not exist forever, a pushback to overcorrected price levels. Additionally, it has been noted that available inventory of homes and vacant land has been steadily contracting over the past three years, with active inventory as of the end of May being down 18.32% compared to the same time last year.
Both the Resort and Local market have benefited from the above-described upward pressures. The higher-end Resort Market showed positive trending, with the number of single-family homes with sales prices above $3,000,000 showing the second highest dollar volume of sales since the record year of 2007. However, the most dramatic upward pressure was noted in the more moderately-priced Local Market, where sales volume increased by a margin of over 68% from last year.