Home Sales Slow in May

May home sales were off 24 percent when compared with a year ago. When seen as the culmination of recent sales trends, it seems the national slowdown in residential sales has some presence here.

According to RealTracs figures for the month, there were 19 homes which closed in May, compared with 25 a year ago. But— and it’s a cautionary note— the average price per home climbed more than $50,000, to $214,846 versus the $158,200 average seen a a year ago. That suggests a disproportionate number of more expensive listings were sold during the month, also reflecting the continued strength and appeal of luxury, lake and lakeview homes.

May's decline also figures in year-to-date sales. Overall, home sales for the first five months of the year were off 25 percent when measured against the same sales period of 2007. One hundred and seven homes were sold through May then, compared with 83 this year. The average price is slightly higher, though, again attesting to higher priced sales. The typical home sold brought $153, 187 through May 2008, $132,000 for the same period of 2007.

It’s a different story for land, both for the month and the year thus far. In May 10 parcels were sold, averaging $90,720. May 2007 nine parcels sold, at $61,666. Sales both months represented just a a minute share of total parcels available: A year ago, the monthly average was 464 parcels for sale each day; May 2008 the average land inventory climbed to 612 parcels.

A flurry of land sales in the early months of the year have helped the cumulative total easily surpass land sales through May 2007. To date, 67 parcels sold, at an average of $50,919. Last year by this time only 44 parcels had sold but the average selling price was $73,404.

We are starting to see some reports the national real estate market is showing some sign of renewed vigor in other areas, including some hardest hit by the recent downturn. It could be our market is running slightly behind the national trends and it may be a little longer for the uptick to be seen here. June’s figures should provide some insight.