The I’On real estate market continues to be much more active in 2012. The number of homes sold this year is up 19% over the same period in 2011, but the average selling price/square foot is down 11.4%. This is reflective of continued pressure on pricing. More on that later. But first, here are the details…..
I’On Homes Sold This Year – Through 9/10/12:
- 37 Homes Sold
- Average Selling Price/Square Foot – $235
- Median Selling Price – $735,000
I’On Homes Sold in 2011 Through 9/10/11:
- 31 Homes Sold
- Average Selling Price/Square Foot – $254
- Median Selling Price – $745,000
In addition, there are currently 39 homes for sale in I’On with an average asking price/square foot of $271. Also, there are 9 I’On homes that are under contract, pending closing. The average asking price per square foot for these homes is $251.
Why Does the I’On Real Estate Market Continue to Feel Price Pressure??
The general feeling this year is that the real estate market has “turned the corner”. An argument can certainly be made for this as there is a lot more activity in 2012 compared to recent years. In fact, some areas of the Mt. Pleasant real estate market are seeing a strong surge in activity as well as improvement in pricing. However, prices have yet to stabilize in the upscale market.
Distressed Properties Represent 22% of I’On Homes Sold in 2012…
There are several factors that are contributing to lower prices in I’On. First and foremost, distressed sales (bank-owned properties and short sales) comprise 22% of all homes sales in I’On so far this year. There are few sellers that are more motivated to sell than the banks. They DO NOT want to be in the real estate business!! Buyers recognize this and are continuing to look for “deals” when buying homes and they are getting them from the banks. As you can see from the chart below, distressed I’On homes are selling at a 21% discount to the market for non-distressed homes in the neighborhood.
I’On Inventory Levels Still Key to Price Swings…
As long as distressed properties represents a significant component of the overall I’On real estate market, some sellers will likely continue to feel some pressure on pricing. In the end however, it’s still all about supply and demand. Inventory is down to 39 homes, so it is moving in the right direction. Yet, sellers of I’On homes above $1M are feeling price pressure as months of inventory in this price range has increased this year due to significant reduction in demand in 2012 and increased inventory. There are 12 I’On homes for sale above $1M, but only 4 sales in the last 12 months. The chart below shows months of inventory for I’On homes by price range…
Please give me a call if you have any questions about this post or need other specifics about the I’On real estate market. If you are thinking of selling, please contact me to learn more about my marketing program for your home. I have sold dozens of homes in I’On over the years and have an intimate knowledge of this community, what buyers are looking for, and how to get your home sold. Have a great week and I hope that you continue to take advantage of all the special activities and events that I’On has to offer!!