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I’On Market Update – May 20th

Since my last report on April 19th, there have been 3 additional I’On home sales:

  • 70 Sanibel Street – $475,000
  • 37 Sowell Street – $515,000
  • 197 North Shelmore – $1,070,000

The home at 197 North Shelmore was the first I’On home to sell above $1M in 2010.  Prior to this sale, the last home to sell for a price above $1M in I’On was in November, 2009.

Through May 19th, the number of I’On homes sold is still significantly above the same period last year, though the pace has slowed somewhat in the last 30 days:

2010 I’On Home Sales Through 5/19/2010:

  • 17 Homes Sold
  • Average Selling Price Per Square Foot – $260
  • Median Sold Price – $637,500

2009 I’On Home Sales Through 5/19/2009:

  • 10 Homes Sold
  • Average Selling Price Per Square Foot – $260
  • Median Sold Price – $887,500

I’On Home Buyers Opting for Homes in Lower Price Brackets

While the average selling price per square foot for I’On homes sold in 2010 has remained steady, the median selling price for I’On homes is down 39% from 2009. This is reflective of buyers opting to purchase proportionately more homes in lower price brackets than they were doing in previous years.  In the last 9 months, 90% of all I’On homes have sold below $1M, yet currently 47% of all I’On homes on the market are priced above $1M.  Clearly, the market for I’On homes above $1M is very sluggish.  There are very few buyers in this price range and I don’t see that changing significantly in the near term.

Inventory of I’On Homes For Sale Slightly Higher in Last 30 Days

Inventory levels have risen slightly since my last report.  Currently, there are 72 homes for sale in I’On.  The chart below reflects current I’On inventory by price range compared to the number of I’On homes sold during the last 9 months.  This further reflects the disappointing results in homes priced above $1M.

I’On Home Buyers Still in Control

The “months of inventory” by price range still reflects a sold buyer’s market.  However, for homes priced below $500K, we are approaching a “balanced market” as there is only 7 months of inventory available in this price range.  Unfortunately for buyers, the supply is rather limited in that price range so there is not going to be an overall jump in sales activity unless more inventory comes on the market in that bracket.

  • Below $500K – 7 months of available inventory
  • $500K to $750K – 13 months of available inventory
  • $750K to $1M – 17 months of available inventory
  • Above $1M – 102 months of available inventory

Distressed I’On Home Sales Becoming More Common

I get asked a lot about short sales and bank-owned properties in I’On and what is happening with them.  While they are certainly not yet the norm, the number of homes being contracted for that are in a distressed situation is certainly rising.  For example, of the 15 homes currently under contract in I’On, 7 of them are either potential short sales or bank-owned.  When these homes do close, the sales prices are likely to have a negative impact on the average selling price per square foot.  For example, the average selling price per square foot in I’On is currently $260 but the asking price per square foot for the 7 distressed homes that are under contract is $222.

If I can answer any questions about this post or if you are thinking of buying or selling an I’On home, please contact me.  My team offers a full range of services and we will be happy to assist you in any way we can.

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