Real estate sales down 18 percent from 2008

Published 6:35 pm Friday, December 4, 2009

Sales of real estate, including homes and land, are down 18 percent in Polk County through the first 11 months of this year, compared to the same period last year, according to data from the Tryon-Polk Association of Realtors, Inc.

The decline is much steeper, however, when compared to 2007, the last of several busy years in the local real estate market.

The number of sales so far this year is down 60 percent from 2007, while the value of the sales is down 71 percent.

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In 2007, more than $91 million was spent on real estate in Polk County. The county had 329 real estate sales, including 219 home sales and 110 land sales. In 2008, the total spent on real estate dropped to 40 million with 140 sales, including 112 homes and 46 land parcels.

So far this year, the Tryon-Polk Association of Realtors is reporting a total of 130 real estate sales valued at $26.6 million. The total includes 107 home sales and 23 land sales.

The table on page 9 provides more data and analysis, along with the information below, which was provided by local realtor Paul Pullen. He says outside-of-market sales by members of the association have been excluded to give a more realistic view of the local market. As a result, the figures do not includes sales by local realtors in areas such as Greer, Hendersonville or Chesnee.

The number of house sales from 2008 to 2009, has dropped by less than 5 percent.

The dollar value of homes sales dropped off 20 percent from 2008 to 2009.

The median price of homes dropped 40 percent from 2008 to 2009.

It appears that the market gets worse for homes priced above $350,000. Only 13 of the 107 homes that sold this year so far, sold for $350,000 or more. And only six homes sold for more than $500,000&bsp; so far this year.

Land sales have tumbled this year, and are down 50 percent from last year in number, and down in dollar value more than 70 percent. Of the 23 land sales in 2009, only one parcel sold for more than $250,000. It appears that land purchases are probably discretionary purchases and may be affected by bank lending conditions. Obviously, other economic conditions&bsp; may be at play.

The decline in average price per home may be partially attributed to first time homebuyer tax credits and bank lending practices which are limiting large mortgages (called jumbo loans).Real estate sales data

&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp; homes&bsp;&bsp;&bsp;&bsp; $ Value&bsp;&bsp; &bsp; Median price&bsp;&bsp;&bsp; Avg. # days on market

2007&bsp;&bsp; &bsp;219&bsp;&bsp; &bsp;$67.9 million&bsp;&bsp; &bsp;$215,000&bsp;&bsp; &bsp;150

2008&bsp;&bsp; &bsp;112&bsp;&bsp; &bsp;$31.6 million&bsp;&bsp; &bsp;$210,750&bsp;&bsp; &bsp;164

2009&bsp;&bsp; &bsp;107&bsp;&bsp; &bsp;$24.4 million&bsp;&bsp; &bsp;$170,000&bsp;&bsp; &bsp;210&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp; # of land sales&bsp;&bsp; &bsp;$ value of land sales

2007&bsp;&bsp; &bsp;110&bsp;&bsp; &bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp; $23.5 million

2008&bsp;&bsp; &bsp;46&bsp;&bsp; &bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp; $8.4 million

2009&bsp;&bsp; &bsp;23&bsp;&bsp; &bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp; $2.2 millionTotal real estate sales (homes and land)

&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp;&bsp; Sales&bsp;&bsp; &bsp;Value

2007 &bsp;&bsp; 329&bsp;&bsp; &bsp;$91.4 million

2008&bsp;&bsp; &bsp;158&bsp;&bsp; &bsp;$40 million

2009&bsp;&bsp; &bsp;130&bsp;&bsp; &bsp;$26.6 million