Sunday, July 18, 2010

Price Per Square Foot, $ Volume, Units - 2006 thru Q2 2010

One and two bedrooms appear stable while the larger units are more volatile. Studio's appear to be in decline in terms of price per square foot but keep in mind that there are only a handful of studios that trade each quarter. We could say the same about 4 bedrooms and and 1-4 family homes.

Starter units (under $400K) were propped up by the $8,000 First Home Buyer's Credit until it expired on April 30th, although as long as the buyer had a fully executed contract of sale by the 30th of April, he/she could still take advantage of the credit as long as the unit closed by June 30th.

Will we see starter unit sales drop off now that we are beyond the date that all First Time Home Buyer credit units had to close? Nationwide, buyer's in this segment went down 32% when, the Treasury projected a drop off of only 20%.

Looking at units sold you can see that they went way up in Q1 & Q2 in comparison to 2009. However, take a look at the tale end of the curve of the line. You can see that it went from increasing an at increasing rate to increasing at a decreasing rate when it a sign of slowing. Will that volume peak and start to come down? How much of that is seasonal? How will it compare to previous years?

All of the data from the 2nd Quarter analysis articles came from the Hudson County MLS.  Any private sales are not included in this analysis.

Provided by Donna Antonucci
Prudential Castle Point Realty

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