Tuesday, July 07, 2009

Petoskey Real Estate Sales Collapse

The Petoskey real estate market appears to have collapsed in the first half of 2009, following a relatively strong first half the previous year. The latest sales numbers are abysmal. One can only wonder if these latest numbers signal a market capitulation or bottom, or whether things can actually get worse from here.

The number of Petoskey homes and condominiums sold during the first half of 2009 was down only 22%, from 120 units in 2008 to 94 units in 2009. I only have unit sales data from 2002 forward, and 94 units is the smallest number in the first half of any year in the last eight years. That is the good news.

However, the dollar volume of 1st half residential sales in the Petoskey School District tanked, from $47,001,605 in 2008 to $16,510,876 in 2009, a decrease of almost 65%! This dollar volume is the lowest number recorded since 2001, which is oldest dollar volume data I have available for a first half, when $24.6 million in residential sales was reported.

The average sale price for a Petoskey home during the first half of 2009 plummeted to $175,648 from $391,680 during the first half of 2008. Perhaps more importantly, the median sales price decreased significantly, from $180,500 in 2008 to $138,000 in 2009, a decline of 23.5% year over year, and a full 30% decline from what appears to have been the market peak median sales price of $197,090 for the full year 2005.

Of the 94 Petoskey homes and condominiums sold during the first half of 2009, it appears as though at least 41, or 43.6% of the sales, were bank owned foreclosures. I know that at least some of the remaining 53 sales were short sales, where the bank accepted less than what was owed on the mortgage to avoid foreclosure proceedings. I think that I am being conservative in my estimation that a majority of the sales during the first half of 2009, or over 50% of the sales, were either bank owned foreclosures or short sales. This is truly an astonishing number. Foreclosure sales are having a significant negative impact upon Petoskey property values and it is unclear at this time if the end to the foreclosure boom is in sight.

Note: Based upon sales information obtained from the Northern Michigan Multiple Listing Service for the period from January 1, 2009 through June 30, 2009.

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3 Comments:

Anonymous real estate philippines said...

Good information on your post subject and aspect. Thank you.

Deirdre Gonzales

7/20/2009 10:42:00 PM  
Anonymous Ann Arbor Real Estate said...

It seems regardless of which corner of Michigan your buying or selling property in, the foreclosure and short sale market is dominant and unyielding. Great data!

3/08/2010 04:05:00 PM  
Blogger connie greenepl said...

Nice post and very creative too.
Real Estate Michigan

9/24/2014 04:56:00 AM  

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