Danville Real Estate Market Not So Hot in June, 2010

The Danville real estate market didn’t look so hot in June, 2010 as evidenced by the 3 fundamental indicators of total sales, total pending sales and total homes for sale. Starting with pending sales, there was a 46.7-perent drop, from 15 in May to just 8 in June. Relative to June of 2009 this represents an even greater drop of 52.9 percent.

Just two of the previous month’s pending transactions turned into closed sales. In all, there were 22 closed sales in June versus 22 in May—a 10-percent increase. But in focusing on the month-to-month fluctuations it’s easy to lose sight of the big picture, which is that total sales were up 37.5 percent relative to this same time last year when there were just 16 sales (June, 2009). Hopefully, an influx of new pending transactions will help sustain the overall momentum that began in March, 2010.

Moving on to the listings department, there were 10.7 percent more Danville homes for sale in June compared to May; 134 to be exact. But what stands out even more is the fact that there were 25.2 percent more homes for sale relative to last June. It would seem that nothing but time will stem the tide of bank-owned properties and foreclosures that have led to continued increases in available inventories.

In what was perhaps the lone bright spot in Danville, sellers received an average of 98 percent of list price in June. In fact, June marked the second month in a row that the sold-list differential was this high. Over the past 12 months the closest it came to reaching this was in October and November of 2009, when it reached 97 percent. It would seem that luck comes in twos in Danville. The 12-month average for this statistic is 95 percent. If you have to wait over 3 months to sell your home at least there’s some consolation in getting as close to your asking price as possible.

Some other pertinent facts:

  • On the not-as-dark side, the average time on market fell from a 15-month high of 117 days in May to ‘just’ 94 days in June. Over the past 15 months, homes in Danville, Indiana have never spent fewer than 70 days on market. The 12-month average is 94 days.
  • The average price per square foot rose a bit, from $70 in May to $76 in June. The 12-month average is $67 per square foot.
  • The average sold price fell 11.3 percent, from $177,000 in May to $157,000 in June. This was also 9 percent over the 12-month average of $144,000.
  • Inventory remained unchanged from the previous month with 6.1 months of inventory based on closed sales. Available inventory based on pending sales, however, more than doubled, with 16.8 months’ worth in June compared to 8.1 in May.
  • The absorption rate based on closed sales was 16.4 percent, while the absorption rate based on pending sales was essentially cut in half, from 12.4 percent in May to 6 percent in June.
  • The average active price of $210,000 remained unchanged from that of May and and 5.4 percent below the 12-month average of $222,000.