3rd Quarter: Proceeding Toward Normal?

3rd Quarter: Proceeding Toward Normal?

The first three quarters of this year produced a significant - 16.4% - increase in the average price of residential properties, compared to the first three quarters of last year with a similar - 16.6% - increase in the number of transactions. The market was hot! September continued the trend with 19% more transactions than last September at a 14.3% higher average price. September continued progress toward a normal market as only 8.8% of all transactions were distressed properties.

Despite this headway, our average price, at $236,064 (for single family detached with less than 2 acres, plus condos and townhomes) is still about 10% lower than the average price in 2006-07 when the market began to turn downward.

It is interesting to note, however, that the number of pending sales - contracts in escrow at the end of the month - were 16% lower this September than they were at the end of September 2012. This is worth watching as fewer pending transactions should lead to fewer closed sales in the following months. 

The chart below shows the number of transactions and the average price for the first three months of each year from 2006 through 2013.