2015 housing trends
by Jesse Lochman, State Certified Trainee
At the end of every year, we like to take sales data and crunch the numbers to determine trends for the past few years. I used data from Quincy, IL, as this is the largest residential market that we work in, and where many people from the surrounding areas travel for employment, entertainment, shopping, etc. Our sales data includes single family detached residences and condominium units. It does not include transactions where more than one living unit was being sold, except in the rare cases of a large home with an accessory unit. This data was then grouped by year and sorted, and the data was analyzed and used to create the graphs below and draw the following conclusions. Sales volume was generally steady, with less than 8% variation from year to year.
With regard to average residential sales price, the market appears to have strengthened significantly in 2015, with the average price increasing substantially when compared to 2013 and 2014.
The number of days properties sat on the market prior to selling continued to decline in 2015. Days on Market can be influenced by a number of factors, such as unreasonable pricing (both too high and too low), a lack of marketing/advertising by the listing broker, or any number of other reasons. Regardless, anytime we see such a substantial drop among such a large sample size, it is a sign of a strengthening market.
After crunching the above data, I wasn’t sure if any of the increase in price might possibly be attributable to larger homes selling, so I averaged the prices per square foot. Again, it appears that the data indicates an upward trend in general.
There are several possible reasons for the increase in sales prices in the Quincy area. The realization that low interest rates may not last forever is the most likely explanation. Many first time buyers who had previously been on the fence and were hesitant to purchase therefore began to shop in earnest. Economically, the area has been steady, although several large retailers announced plans to open stores in the area during 2015, which appears to have pushed home values higher than the rate of inflation.
The appraiser cautions the reader not to place too much value on market averages. While they can be useful for determining the strength of the market as a whole, there is no substitute for an experienced and qualified appraiser making a visit to determine the market value of a specific property. Spurgeon Appraisals has the expertise to account for the numerous variables affecting the value of a particular residence, and we bring this knowledge to every appraisal we perform.
Spurgeon Appraisals regularly appraises a variety of property types. We have experience appraising farms, residences, and commercial properties. We pride ourselves on providing excellent customer service and quality appraisals. Contact our team to see how we can meet your appraisal needs and exceed your service expectations.
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