Westfield Real Estate Market Slow to Recover in June, 2010

There was a lessening of the downward direction in total pending sales that began just one month prior with the expiration of the federal tax credit for new home purchases. Whereas in May total pending sales dropped an unnerving 60 percent, in June, 2010 they dropped ‘just’ 25 percent. Extrapolating from this it’s easy to envision that this is the beginning of a trend that will ultimately lead to an upswing in total pending sales in the coming weeks or months–at least, that is the hope. Relative to June of 2009 this represents a 71.9-percent drop in total pending sales.

Not surprisingly, there was a drop in total close sales of 4.9 percent as just 39 homes sold in June compared to 41 the previous month. June’s total of 39 sales becomes a somewhat uglier statistic when viewed in a more historic context as it represents a 40.9-percent relative to June of 2009. Still, we should not expect too much in too little time as all markets respond differently to adversity, some taking more time than others to recover; the Westfield real estate market being a prime example.

While both pending and closed sales were busy falling, total listings were on the rise. In fact, not only was June’s total of 321 Westfield homes for sale 2.2 percent above the previous month’s total of 314 and 8.4 percent above last June’s total of 296, but it nearly matched a 15-month high of 324 listings that was set in April of 2009. At least we know the reason.

June offered a replay of the previous month’s statistic for average time on market as homes spent a 15-month low of 50 days on market. Moreover, this was a significant improvement from the 15-month high average of 116 days on market that occurred in February, 2010. Finally, it was a 34.2-percent decrease from the 12-month average of 76 days.

Only once in the past 12 months (September, 2009) did homes sell for less than 96 percent of list price. In June, 2010 the average sold-list differential of 96 percent was just 2 percent below the previous month’s average of 98 percent and 1 percent below the 12-month average of 97 percent.

Some other pertinent info:

  • The average cost per square foot in Westfield, Indiana has not varied by more than $10 in the past 15 months. June’s average of $98 per square foot not only matched the previous month’s average but the 12-month average as well.
  • The average ‘sold’ price of $264,000 was 22 percent above the previous month’s average of $216,000 and 12.3 percent above the 12-month average of $235,000.
  • June’s total of 8.2 months of inventory based on closed sales was up from the previous month’s total of 7.7 months. Not surprisingly, total inventory based on pending sales rose significantly from the previous month, finishing at 17.8.
  • The absorption rate based on closed sales was 12.1 percent while the absorption rate based on pending sales was 5.6 percent.
  • The average active price of $287,000 was 4.7 percent above the 12-month average of $301,000.
  • The median price was $210,000.