November Closing Prices Show Market’s Continued Strength

Westcoe Realtors, Riverside California…The most recent closing statistics for the Greater Riverside area in the month of November 2008 show that real estate market closing prices continue to remain strong when compared to the list price.  In November, 59% of all properties that closed escrow in the area closed at a price that was either at or above the list price.  In October, this indicator was also 59%, and it was 62% in September.

When broken down by list price, the percentages become very interesting, indicating that the lower price ranges are far stronger than the upper levels.  For homes priced below $350,000, the percentage of homes that closed at or above the list price climbs to 62% (367 closings, 227 at or above the list price).  For those homes above $350,000, the percentage falls to 40% (63 closings, 25 at or above the list price). 

The above numbers show that certainly in the price range below $350,000, many areas are no longer experiencing pricing declines…and indeed have bottomed out and are now remaining stable.  Almost every property that sells at a price higher than the list price is the recipient of multiple offers, in effect creating a bidding process for the successful buyer.  This bidding between multiple potential buyers drives the prices up to the eventual sales price…which 59% of the time in November was equal too or higher than the list price.

In the end, the bank repos will continue to dominate the real estate horizon for some time, but it is apparent that in some areas, the prices may have reached a stabilization point.   The huge supply of inventory will probably mean that prices will not be rising soon, but the above numbers do indicate that in many cases, they are no longer falling…and this is good news for almost every homeowner.