No pending real estate transaction remains pending forever. Sooner or later, it will either fall apart or realize its destiny as a closed sale. This is exactly what happened in the Avon real estate market in May, 2010. Considering the 15-month high total of 85 pending sales that were waiting to close in April it comes as no surprise that the total number of homes sold in May was up. This figure grew 41.7 percent as there were 68 sales in May compared to 48 in April. Compared to the 57 sales that closed in May of 2009 this was a 19.3-percent increase.
The 67.1-percent drop in the total number of pending sales, from 85 the previous month to just 28 in May, was the single largest decrease in this statistical category over the past 15 months. Compared with last May this was a 55.6-percent drop. May represented the 4th consecutive month that the total number of Avon homes sold grew. With the pipeline of pending sales having depleted itself to a large extent in May, this 4-month streak would appear to be in jeopardy in June.
If you’re a seller then you probably have a keen appreciation for the law of supply-and-demand. Specifically, the last thing you want is for buyers to have even larger inventory to browse. This is what happened in May as the total number of Avon homes for sale rose 3.1 percent versus last month’s total of 392, topping out at 404 listings. Compared to just 323 listings in May of 2009 this was a 25.1-percent increase in the total number of homes for sale.
By extension, there were corresponding changes in both the available inventories and absorption rates based on pending and closed sales. The total months of available inventory based on close sales dropped from 8.2 in April to just 5.9 in May, while the total months of inventory based on pending sale more than tripled, growing from 4.6 to 14.4.
Some other pertinent facts:
- Homes spent an average of 88 days on market in May; up slightly from the 12-month average of 86 days. Over the past 15 months Avon homes have spent no fewer than 69, and more than 110, days on market.
- The average sold-list differential was 97 percent. This is up slightly from the 12-month average of 96 percent.
- Buyers paid an average cost per square foot of $72. This, too, is up slightly from the 12-month average of $71 per square foot.
- The average ‘sold’ in Avon, Indiana price was $180,000, while the average active price was $230,000.
- The absorption rate based on closed sales was 16.8 percent, while the absorption rate based on pending sales was 6.9 percent.