1st Quarter 2016 Turquoise Trail Market – Surf is Up!

2First Quarter 2016 Home Sales Volume Surpasses RecordsThis analysis covers the MLS Areas identified as Hwy 14/County Road 42 – Area 11, which begins roughly at 599 and ends at County Rd 55A, and Area 12 that continues South through Madrid of single-family homes on at least five acres.

CLOSED AND PENDING SALES: 2016 has gotten off to a roaring start, with 12 closed and 7 pending sales in the first quarter. These 19 sales in the first quarter represent nearly equal the amount of all total sales last year. The surf is up fueled by continued low interest rates and diminishing inventory, particularly for conventional homes under $450,000. This is also true in our competing area along 285 South. The uncertainty of the post-election economy can also spark buyer activity. Buyers are taking advantage now of both great interest rates and good pricing for investment. The median sale price has gone down this quarter from $468,100 to $385,000 due to buyer focus on catching the last of the under $400,000 market – however, there are sales both closed and pending representing the $500,000s – $800,000s. The average square foot sold price is up to $192, up from $172 last year.

ACTIVE MARKET: Currently there are 33 active listings on the market – about a six month inventory at the pace of current sales – which is considered a balanced market. Off-the-grid homes continue to represent a significant percentage (76%) of the under $450,000 market, but recent closing for off-the-grid with big-bank loans this year and lack of inventory in this price range should open up that market. The median price on the current market is about $500,000 with the median square foot price at $214 with a median acreage of 14 acres. Stronger market conditions have stabilized the market and ample inventory levels are needed to sustain momentum. Mortgage interest rates have remained low but are expected to rise which encourages buyer demand. If inventory stays low, there should be renewed interest in land. Land sales are also showing some slight recovery, with 13 sales in the last year all under $100,000. The two land sales this quarter both at or under $50,000.