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BLAIRSVILLE REALTY

MID-SUMMER

2011

ISSUE 6

T H E R E A L E S TAT E R E P O RT
2011 Mid Year Market Report for Union County
Surprisingly enough, data from our local real estate market for the rst six months of this year looks much better than I was expecting. Sales for both homes and vacant lots in Union County were both stronger compared to the same time last year. Inventories for both types of properties also dropped considerably but a good portion of that fall is not due to sales. Instead, many reluctant sellers have pulled their homes from the market due to the low prices and there are many bank owned properties (shadow inventory) just sitting there in limbo. According to our MLS, 175 homes closed during the rst six months of the year which is 26% more than 2010. The average number of sales per month were up by 6 units or 26% and the months supply of inventory dropped by 38% down to an eleven months supply on average. The lower priced homes are by far moving much faster than the more expensive ones but we are seeing more higher end homes sell. The percentage of home sales made up by foreclosures has stayed about the same at 40% while only accounting for 7% of the active inventory. The total number of homes for sale dropped by 138 units or 21%. The only negative data is the median price has slipped another 7% down to $132,500. Lot sales are also looking better. There were 73 lots closed this year which is still terrible but 87% better than last year. The number of average sales per month has nearly doubled and the months supply of inventory has fallen 63%. Of course the cheaper lots are selling the quickest by far. We still have a nine year supply at the current absorption rate. The number of lots listed for sale is down by 349 or 31%, this is mostly due to subdivisions being foreclosed and not sales. Bank owned lots made up 68% of all lot sales in our MLS and account for only 4% of total inventory. The median price dropped another 44% down to $14,000 in the last year. Acreage is still all but impossible to price. From data obtained in The Beasley Report which tracks all sales in the county over $5,000, eleven tracks of 25 acres or more closed during the rst half of this year. Every single sale was a bank owned property and about half were developed subdivisions being sold in bulk including one on the lake. These sales ranged from $1,700 per acre and averaged around $4,300 per acre. It has been my experience that some of the banks and FDIC wont negotiate much when their property is listed but are willing to give it away at auction after a few months. I dont know at the times we have seen a property sell for half or less at auction than we had offers for just a few months earlier. The Beasley Report showed signicant gains in both volume and especially the number of transactions. The total volume of real estate sold was up about 12% to nearly $44 million and the transactions were up by 43% to 441 closings. Bank owned properties made up 36% of all transactions in Union County and increased about 84% when compared to last year. While things do look better than a year ago, we are still a long way from being out of the woods and in reality, were still lost in the forest. Prices are still falling and the foreclosures keep piling up putting even more pressure on prices in a vicious cycle. As long as it is more important for a bank to foreclose on a borrower and dump their property for whatever re sale price it will quickly bring instead of restructuring their customers loan into something they can afford, I dont see an end to it. I think the governments theory that the economy would not improve until the banks got rid of their bad loans and wanted to lend money again was probably correct. How they chose to go about cleaning up the mess turned a recession into a depression in this area at least. Thanks again for reading and we truly do appreciate your business. Robert Rogers Broker / Owner Blairsville Realty

Union County Residential Sales January 1 - June 30, 2011


Price Active Under Contract 21 (10) 18 (2) 14 (3) 6 (1) 8 (0) 4 (0) 1 (0) 2 (0) 74 (16) 22% Closed YTD Avg Sales Per Month 10.1 8.1 5 2 1 1.7 0.3 0.5 29.2 Month Supply of Inventory (MSI) 8 12 22 27 42 31 86 82 18

Under $100,000 $100,001 - $150,000 $150,001 - $200,000 $200,001 - $250,000 $250,001 - $300,000 $300,001 - $400,000 $400,001 - $500,000 $500,000 + TOTALS % Foreclosures

85 (14) 101 (10) 111 (10) 54 (1) 55 (4) 53 (1) 26 (0) 41 (0) 526 (40) 7%

61 (37) 49 (22) 30 (3) 12 (2) 8 (4) 10 (2) 2 (0) 3 (0) 175 (70) 40%

( ) Denotes Foreclosures

Union County Lot Sales January 1 - June 30, 2011


Price Active Under Contract 3 (1) 4 (3) 0 (0) 4 (0) 1 (0) 0 (0) 0 (0) 0 (0) 1 (1) 13 (5) 22% Closed YTD Avg Sales Per Month 6.2 2.2 0.7 0.7 1 0.5 0.2 0.3 0.5 12.2 Month Supply of Inventory (MSI) 12 37 111 74 106 232 345 100 326 63

Under $15,000 $15,001 - $20,000 $20,001 - $25,000 $25,001 - $30,000 $30,001 - $40,000 $40,001 - $50,000 $50,001 - $60,000 $60,001 - $70,000 $70,000 + TOTALS % Foreclosures

76 (17) 81 (5) 78 (4) 52 (1) 106 (1) 116 (0) 69 (0) 30 (0) 163 (2) 771 (30) 7%

37 (31) 13 (4) 4 (3) 4 (2) 6 (5) 3 (1) 1 (0) 2 (1) 3 (3) 73 (50) 40%

( ) Denotes Foreclosures