Here we are midsummer in Puerto Penasco and counting the days and weeks until the humidity level subsides for the season. In similar fashion, we wait for the fall vacationers to return in anticipation of renewed real estate activity. The tourist activity during April – July reflected an increase over the same time last year. Occupancy rates were much improved over 2010 and this year’s tourist activity bodes well for future increases in real estate sales. While the number of closed transactions dropped to 10 in June 2011, there were 15 pending transactions in June signifying potentially more closed sales to come in July.
The overall level of real estate activity has been relatively flat for several months. However, June’s number of closed or sold transactions dropped. June’s statistics do reflect a positive view to consider. The number of active listings dropped, pending sales have increased, inventory (absorption rate) has decreased and for buyers, the median price continues to fall. For sellers, we need the inventory level to continue to fall and the sold volume to bounce back as expected in July. That’s how the median sale price will stabilize for sellers. Below is a current four month comparison to highlight some of these statistics and trends:
MAR APR MAY JUNE
· Number of Active Listings 641 647 644 595
· Number of Pending Contracts 16 10 13 15
· Number of Sold Listings 15 12 17 10
· Absorption rate (months) 47.5 48.1 47.4 44.9
· Median List Price $223,000 $219,900 $219,000 $219,000
· Median Sale Price $156,250 $108,000 $140,000 $111,750
· Sale Price as a % of Original List Price 73.7% 71.5% 66% 82.1%
For those investors interested in land and lot data, here is a summary of year to date activity compared to the same period in 2010:
2011 YTD 2010 YTD
· Active Listings 279 339
· Pending Listings 4 11
· Closed Sales 2 10
· Median List Price $79,000 $99,000
· Median Sale Price $12,750 $38,500
Clearly, 2011 land transactions have been seriously affected by the overall slowness in the market. The only two sales this year were both less than $30,000 and the additional two pending transactions are in the $40-$70,000 range. There is a significant inventory of land and lots that will be available for several years to come. Sellers will need to be patient or if possible, perhaps they should consider delaying the listing of their land. However, if you have a unique property in a unique location, you may have an opportunity to sell. Of course, seeking the assistance of a competent real estate professional will help you determine your sales strategy y reviewing comparable sales and existing competition.
Should you have any questions about this data please consult your AMPI Realtor who can provide you with additional pertinent data customized for your use. I also encourage our readers to visit our AMPI Puerto Penasco website, http://www.puertopenascoampi.com/, where there is meaningful information for your review including a list of AMPI members and a section devoted to frequently asked questions.
Be sure to enlist the services of an AMPI professional for all your real estate needs.
President – AMPI Puerto Penasco
Rocky Point Resort Properties