Just received the most recent sales numbers for August, 2006 (Download first_american_aug. 06.xls {Excel file, 1.61 MB}, compliments of First American Title). It looks like much of the same as the number of sales in August were down 20% compared to last year and 40% versus August of 2004. Year to date, the number of sales this year are down 23% as compared to the last ten years average. Compared to 2005 & 2004 year to date numbers, sales are down 23% & 43% respectively.
It is very important not to confuse the number of sales with the level of prices. Interestingly enough, prices are not down at all. In fact, prices are still higher than they were last year by a significant amount. Based on the Big Bear MLS sales statistics, the average price for residential sales year to date is $407,898, with a median price of $324,000. The average price last year at the same time was $375,627, with a median price of $284,000. That is a 14% appreciation in residential prices over the last year.
I do believe this number will come down closer to the lower single digits over the next year as more inventory and competition is on the market but this is not even close to all the stories I keep hearing about the real estate market going down the toilet. Don’t believe everything you here but make sure you hear everything.
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