2007 Columbia County Real Estate Market Recap - Residential - Part 2

Another important statistic that reflects the strength of a real estate market and can tell a lot about its future direction is "Average Days On Market". The average days on market statistic represents the average number of days a property is listed before receiving an acceptable offer to purchase it.

Year - Average Days on Market - Sale Price as a Percent of Listing Price

1999 ~ 327 ~ 103.90%
2000 ~ 276 ~ 104.89%
2001 ~ 172 ~ 97.40%
2002 ~ 130 ~ 94.91%
2003 ~ 159 ~ 94.76%
2004 ~ 149 ~ 94.84%
2005 ~ 157 ~ 95.28%
2006 ~ 158 ~ 93.66%
2007 ~ 186 ~ 93.61%

The average days on market statistic very accurately tracked the changes in our Columbia County real estate market. In 1999 and 2000 it took approximately 10 months to sell a residential property. In 2001 as demand strengthened properties began to sell much more quickly. During the peak of the "seller's market" in 2002-2005 this statistic fell to just over 5 months on the market. In 2006 this statistic levelled on and began moving upward in 2007.

It is intuitively easy to see that properties sell more quickly in a "seller's" market and more slowly in a "buyer's market". The Columbia County real estate market is certainly not a "buyer's" market yet. In fact, I would say we have reverted back to the "neutral market" conditions that existed in 1999 and 2000.

Another interesting statistic is Sale Price as a Percent of List Price. This stat is included in the third column above. I find it interesting and telling that from 2001 through 2007 this statistic remained relatively unchanged, even as we went from a "neutral market" to a "seller's market" and back to a "neutral market". I believe this demonstrates an important point about selling real estate in any type of market. That point is: the average house will sell when it's asking price is listed within ten percent of the eventual sale price, almost without regard for changing market conditions.

John A. Avenia, Associate Broker
Beach & Bartolo, Realtors, Inc.
www.columbiacountyrealestate.org
john@columbiacountyrealestate.org
(800) 290-4235

Bernanke Signals Rate Cuts On Concern About Economy

By Neil IrwinWashington Post Staff Writer Thursday, February 28, 2008; Page D01

Federal Reserve Chairman Ben S. Bernanke came to Capitol Hill yesterday during a swirl of new evidence that the economy is getting weaker and inflation is on the rise. But his message was the same as it has been since the beginning of the year: His foremost concern is the slumping economy, and more interest rate cuts could well be on the way.

To read the entire article: http://www.washingtonpost.com/wp-dyn/content/article/2008/02/27/AR2008022700967.html

2007 Columbia County Real Estate Market Recap - Residential - Part 1

Columbia County NY real estate values held up very well in 2007, especially compared to other sections of the country.

Year - Median Sale Price - % Change - Cummulative % Change

1999 - $128,280
2000 - $132,533 ~ +3.32% ~ 3.32%
2001 - $136,550 ~ +3.03% ~ 6.45%
2002 - $149,733 ~ +9.65% ~ 16.72%
2003 - $160,708 ~ +7.33% ~ 25.28%
2004 - $206,562 ~ +28.53% ~ 61.02%
2005 - $235,083 ~ +13.81% ~ 83.26%
2006 - $230,000 ~ -2.16% ~ 79.30%
2007 - $237,500 ~ 3.26% ~ 85.14%

In the years 1999 through 2001 Columbia County NY real estate values appreciated at about 3% per year. After the 9/11/2001 tragedy the real estate market here took off. People who had been on the fence about purchasing a country home immediately decided to do so. Overnight this overwhelming demand created a heated "seller's" market.

Over the next three years real estate value in Columbia County soared to new all-time highs. In 2006 interest rates began to climb and the "seller's" market ended. Because of lower demand for property median sale prices stopped increasing, but held their ground nicely. From 2005 - 2007 median sale prices remained flat, holding most if not all of their gains achieved in previous years. This is a very encouraging, especially considering what has happened to other real estate market all across the county.

John A. Avenia, Associate Broker
Beach & Bartolo, Realtors, Inc.
http://www.columbiacountyrealestate.org/
john@columbiacountyrealestate.org
(800) 290-4235