2007 has started out with dropping sale prices, slowing sales, and rising inventory across the board. In the Mesquite market we reached some new record highs during the first quarter, first inventory numbers of property “for sale”, next asking prices of single family homes reached a new all time high at $210 per square foot. In spite of these new asking prices there are some sure signals that the buyers are winning the battle over pricing.
New homes sales are down 35% comparing 06 to 07 first quarters, while prices have gone from $201.27 to $180.27 per square foot, a 7% price drop. This is in addition to the huge incentives and upgrade allowances being offered by many builders. At the end of the first quarter 2007 there were 29 new homes listed with an average asking price per foot of $219 with an average price tag of around $435,000. There were 22 new home sales recorded this quarter in the local MLS, 50% of those sales were below $300,000 with only 4 above $400,000.
The town home/condo market recorded very little change comparing quarters as far as numbers sold. Sales were down 3% and prices dropped 5%, however the actual price per square foot was up from $169 to $170, this is because of the larger number of smaller units being sold. Inventory, or listings submitted went up 36% from 86 to 117.
The whole picture can be summed up with a few sentences. Overall sales for the first quarter 2007 are down 19% from 142 to 118, while inventory is up 22% from 194 listings submitted to 249 listings submitted. Prices have dropped 13% in average sales price and 6% in price per square foot on the total sales during the first quarter. Asking prices have reached an all time high at $210 per square foot for the average single family homes and the buyers are not buying it. Interest rates remain at near historical lows, the economy is good, job’s growth is good. Competition for “The Sale” in the Mesquite market is growing and it appears that aspect of the market will continue to be a big part of future headlines. All great news for the informed future buyer’s of the Mesquite market. The only thing really out of balance in the picture is the current asking prices.