2012 Real Estate Review: Part 1, Single Family Homes

2012 was a year of ups and downs for real estate in Lakewood. Part 1 of this series will take a look at the State of the Market for Single Family Homes.

Last year there were a total of 395 sales for Single Family Homes. This is the highest amount since 2006 when 395 homes also sold. The peak was in 2005 when 428 homes were sold in Lakewood.

The average sale in 2012 was a 3 bedroom home with 1.97 baths averaging 1,742 square feet. It was listed for $134,144, sold for nearly 95% of list price at $127,180, and took an average of 121 days to sell.

At the peak of the market in 2005 the average home sold was a 3 bedroom, 1.86 bath home averaging 1,692 square feet.  It was listed for $178,160 and sold for 96% of list price at $171,678 in an average of 90 days.

Distressed sales continue to account for at least 13% of the market in Lakewood. These sales include REO sales including HUD, Fannie Mae, and other banks as well as disclosed short sales. The distressed sales market will continue to keep the average sales price low for some time to come. The good news is that the number of sales in 2012 is nearly 24% higher than 2011 and sales prices have indeed stabilized.

The lowest sale price in 2012 was $9,500 for a 2 bedroom, 1 bath 824 square foot home. The highest sale was $1.5M for a 6 bedroom, 7 bath 5,231 square foot home.

One trend remains steady. Appropriately priced homes, in good condition, continue to sell quickly and for top dollar. Thirty percent of the homes were sold in 30 days or less and did so for 98% of list price. The longer a home sat on the market the less it sold for. Homes sitting for 120+ days on the market sold on average for 93% of list price.

Moving forward…..the active inventory has dropped significantly. Currently there are just over 100 homes for sale in Lakewood. Although it is typical for inventory to shrink during the winter months, this number is extremely low for a city the size of Lakewood. Based on the number of homes sold in December, there is currently only 4 months of inventory on the market. This in essence has shifted Lakewood to what we refer to as a “Normal Seller’s Market.” While this does not mean that sellers can now “name their price,” it does mean that a home in good, move-in condition that is priced fairly will sell quickly and for top dollar. It also indicates that, if the inventory remains low, that we should see moderate appreciation and a slight increase in the average sales price. It is my opinion, however, that as more sellers enter the market this Spring we will see the inventory increase to a 6-month supply. This will create a “Balanced Market” with slight appreciation for homeowners.

It is my opinion that it is a good time to be a buyer AND a seller in Lakewood. Home-affordability is still good, and interest rates remain extremely low for buyers. Owners that have equity, as well as a move-in product, are in a great position to sell. This is a great time for move-up buyers (first or second time sellers) to sell and still be able to take advantage of good buys before the market completes the swing to a “Seller’s Market.”  Remember you can always check your home value and neighborhood real estate activity for free at www.HomeVlauesInLakewodd.Info. A full copy of the 2012 Lakewood Real Estate Report may be obtained by emailing Chris@ChrisBergin.com.

Chris Bergin is a licensed real estate agent with Prudential Lucien Realty in Lakewood.

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Volume 9, Issue 1, Posted 9:24 PM, 01.08.2013