Gwinnett County Real Estate Market Report June - July 2008

June Numbers - Updated 2229 New Listings 766 Sold Listings 776 Listings Pending Average 90 Days on Market for Sold Listings

2229 New Listings

766 Sold Listings

776 Listings Pending

Average 90 Days on Market for Sold Listings

June Numbers - Updated *Listings Pending may have closed in June, may have closed in July, may close in some other month, or may fail to close. But, there IS overlap with Sold Listings.

*Listings Pending may have closed in June, may have closed in July, may close in some other month, or may fail to close. But, there IS overlap with Sold Listings.

July Numbers - Preliminary 2096 New Listings 411 Sold Listings 731 Listings Pending Average 92 Days on Market for Sold Listings

2096 New Listings

411 Sold Listings

731 Listings Pending

Average 92 Days on Market for Sold Listings

June Numbers - Preliminary *While all of these numbers are subject to revision next month, the Sold Listings tend to have the most radical revision. I am estimating 700 closed sales for July.

*While all of these numbers are subject to revision next month, the Sold Listings tend to have the most radical revision. I am estimating 700 closed sales for July.

Days on Market (DoM)

Conclusions Days on Market usually drop in April, May and June. I expected to see mid-90 DoM for May (at 96), June (at 90). July Preliminary is in at 92 DoM. Coupled with the decrease for June, that signals strength. Anywhere in the low 90s for August would be acceptable… dipping into the 80s would be excellent.

Days on Market usually drop in April, May and June. I expected to see mid-90 DoM for May (at 96), June (at 90).

July Preliminary is in at 92 DoM. Coupled with the decrease for June, that signals strength.

Anywhere in the low 90s for August would be acceptable… dipping into the 80s would be excellent.

New, Pending & Sold Listings

Conclusions I expect to see July Sales come in around 700 units. I was 16 low for June… Look for New Listings to slow. If coupled with increase in Pendings and Solds, that is a signal of strength. It may be seasonal, but if we drop below 1900 New Listings, that would be more than seasonal.

I expect to see July Sales come in around 700 units. I was 16 low for June…

Look for New Listings to slow. If coupled with increase in Pendings and Solds, that is a signal of strength. It may be seasonal, but if we drop below 1900 New Listings, that would be more than seasonal.

June Absorption Rates 9931 Listings on the market in Gwinnett County at the end of April, and sales averaged over 12, 6 and 3 month periods. 12 month average: 14.6 months inventory 6 month average: 16.4 months inventory 3 month average: 14.0 months inventory

9931 Listings on the market in Gwinnett County at the end of April, and sales averaged over 12, 6 and 3 month periods.

12 month average: 14.6 months inventory

6 month average: 16.4 months inventory

3 month average: 14.0 months inventory

July Absorption Rates 9864 Listings on the market in Gwinnett County at the end of May, and sales averaged over 12, 6 and 3 month periods. 12 month average: 15.8 months inventory 6 month average: 16.3 months inventory 3 month average: 15.2 months inventory

9864 Listings on the market in Gwinnett County at the end of May, and sales averaged over 12, 6 and 3 month periods.

12 month average: 15.8 months inventory

6 month average: 16.3 months inventory

3 month average: 15.2 months inventory

Conclusions While the July numbers aren’t final, they are still showing a strengthening of the market. Last month I was calling for June to end up under 14.5 months supply, and it came in at 14. I’m looking for 13.5 months in July after the final numbers come in. There is still a long way to go. 6 months of supply is considered balanced.

While the July numbers aren’t final, they are still showing a strengthening of the market.

Last month I was calling for June to end up under 14.5 months supply, and it came in at 14. I’m looking for 13.5 months in July after the final numbers come in.

There is still a long way to go. 6 months of supply is considered balanced.

New/Sold Ratio This ratio compares new listings and sold listings for a given month. It is useful to sellers in determining a pricing strategy.

This ratio compares new listings and sold listings for a given month. It is useful to sellers in determining a pricing strategy.

New/Sold Ratio In June, 34% as many homes sold as were listed during the month. This means that on average, for each 3 homes that were put up for sale, 1 sold. In July, early numbers point to 20% (1:5), but I expect to see that upgrade to 33% for the final numbers.

In June, 34% as many homes sold as were listed during the month. This means that on average, for each 3 homes that were put up for sale, 1 sold.

In July, early numbers point to 20% (1:5), but I expect to see that upgrade to 33% for the final numbers.

New/Sold Ratio

Conclusion The weakness of the N/S% shows that few homes are priced attractively to Buyers. This number tops around 67% Anything under 33% is very weak. Look for the mid 30s this summer. The latest month is always suspect, as the final numbers are never the same as preliminary.

The weakness of the N/S% shows that few homes are priced attractively to Buyers.

This number tops around 67%

Anything under 33% is very weak.

Look for the mid 30s this summer.

The latest month is always suspect, as the final numbers are never the same as preliminary.

Average Sales Price June - $233,099 Down 7.2% from June, 2007 July - $237,396 Down 2.7% from July 2007

June - $233,099 Down 7.2% from June, 2007

July - $237,396 Down 2.7% from July 2007

Average Sales Price Average prices may be volatile, affected by strong or weak sales of homes priced in particular ranges. This number doesn’t really give an indication of market direction except in the broadest sense.

Average prices may be volatile, affected by strong or weak sales of homes priced in particular ranges.

This number doesn’t really give an indication of market direction except in the broadest sense.

List Price/Sales Price Ratio June – 95.94% July – 95.25% Over the last few years Sale Prices generally held between 97% and 98.5% of List, although there have been some dips into the high 96% range in the last few months. Honestly, though, this isn’t a huge indicator of the market.

June – 95.94%

July – 95.25%

Over the last few years Sale Prices generally held between 97% and 98.5% of List, although there have been some dips into the high 96% range in the last few months.

Honestly, though, this isn’t a huge indicator of the market.

Conclusion List/Sale Price % gives an indication of Buyer strength. It also shows whether Sellers are being realistic with pricing. The indications are also very general.

List/Sale Price % gives an indication of Buyer strength.

It also shows whether Sellers are being realistic with pricing.

The indications are also very general.

Overall Conclusion While I always expect to see seasonal increases this time of year, the numbers are fairly strong. Last year I was calling for a 2 nd Quarter recovery in Gwinnett, but we need to see how Fall goes to know if there is recovery or just positive seasonality. There are some great deals, and there are some dogs. The key is finding the right deals. Keeping perspective, sales are cyclical. This is a good time for investment… not a great time to sell without a strategy.

While I always expect to see seasonal increases this time of year, the numbers are fairly strong.

Last year I was calling for a 2 nd Quarter recovery in Gwinnett, but we need to see how Fall goes to know if there is recovery or just positive seasonality.

There are some great deals, and there are some dogs. The key is finding the right deals.

Keeping perspective, sales are cyclical. This is a good time for investment… not a great time to sell without a strategy.