The average price for SFH's dropped a significant 6% month over month (from $1,134,396 to $1,064,249). This drop means SFH's are now down a total of 13% from their peak highs. Our friends over at VREAA have laid out that drop month by month:
May 2011: $1,223,421 *Historical peak
June 2011: $1,215,265
July 2011: $1,133,357
August 2011: $1,162,242
September 2011: $1,104,896
October 2011: $1,162,349
November 2011: $1,134,936
December 2011: $1,064,249 (down 13% since peak)
As you can see it isn't a straight drop, but it is a stunning 13% decline from the high of 7 months ago. Another interesting statistic is Inventory.
When you compare December of 2011 to December of 2010, the total inventory for sale is up 17%. Meanwhile total sales are down - also by 17%. While December is always considered a slow month, this large boost in inventory with a corresponding drop in sales activity is significant. And the downward trend on the average price graph certainly stands out and captures your attention.
Will there be a rush to list and complete a sale even if it means accepting significantly lower offers beyond the current 14% drop from the bubble highs? They would still be making a massive profit over what they paid 30 - 40 years ago so the ability/willingness to accept what would currently be considered low-ball offers is there.
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