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Edna Taylor
CRB, CRS, GRI, e-PRO, ABR

Texas Real Estate Broker

            Greater McAllen and Upper Rio Grande Valley Statistics     03/12

MARKET  "The real estate market conditions have changed considerably with the volatile daily stock market changes.  The 2011 year was originally projected as a promising year after the 2008 financial market crash.   However, we are currently experiencing less sales in 2011 for the McAllen, Edinburg, Mission, and Weslaco areas than in 2010, 2009, and 2008."  This statement was made in August of 2011, and my projections were correct.  There were 2265 sales in 2011 which are 117 fewer sales than the previous 3 years.

It seems that the market for 2011 has been the least desireable since the 2008 financial market crash.

"The following Number of Residential Solds indicate January and February 2011 showed a better outlook for the beginning of the year; however, March has not shown better sales than 2010.     Reflecting sales in the 100's, the 2nd quarter of 2011 does not show that the market has bounced back to a steady level.  July of 2011 indicates a different story. We are experiencing fewer sales than the last 3 year averages.  Only the month of March have we experienced over 200 units sold per month."   This statement was also made in August 2011.

Number of Residential Solds

While there are currently an existing 2216 residential units on the market at the beginning of March 2012, the Greater McAllen area is experiencing a 12.24 months supply of homes taking an average of 160 days on the market.  Currently, there are 378 pending units with an additional 56 units under option.

Absorption rate - the rate at which real estate is sold, or absorbed, in a specific area

Calculating absorption rates in terms of residential units sold per month is an important statistic. Thus, for this area, the absorption rate is the number of homes sold so far this year, 1266, divided by the months (7).  Compared to 203.67 homes are sold per month in this area in 2010, the number of homes sold per month in 2011 thus far is 180.86. This is the absorption rate.

Sometimes the absorption rate is expressed in relation to the amount of inventory. Our inventory in the Upper Valley is 2213 residential units on the market for sale. Thus, 180.86 homes is 12.24% of the inventory; so the absorption rate is just 12.24% of the inventory per month.

Months supply of inventory (MSI) - an estimation of how long it will take for all the market's homes to be sold, or absorbed, based on how many homes are currently on the market and the rate homes have sold in the past (absorption rate).

This is pretty simple. If 180.86 homes are sold per month in Upper Valley, how long will it take to sell 2213 homes on the market? Divide homes on the market by homes sold per month (2213/180.86= ???). It will take 12.24 months to sell all the houses. This is the months supply of inventory (MSI).

MSI is simply used to compare the size of an inventory to the rate of sale. This is very important. MSI is a great indicator of how balanced a market is.

MSI less than 5 months = seller's market
MSI equals 5-7 months = balanced market
MSI greater than 7 months = buyer's market

TYPE OF FINANCING ANALYSIS

The market has changed in the type of financing that has occurred throught out this year.  The following reflects the different types of financing that Buyers are currently using and the time on the market for units sold for January 1, 2011 thru July 31, 2011

Residential Units Sold

TIME ON MARKET ANALYSIS FOR UNITS SOLD

STATISTICS FOR SOLD RESIDENTIAL 1/01/2011 - 7/31/2011

TOTAL NEW LISTINGS              2937

MEDIAN SOLD PRICE                  105000

AVERAGE SOLD PRICE                126233

AVERAGE DAYS ON MARKET        147

TOTAL SOLD DOLLAR VOLUME     159,684,276

BUYERS   The current MSI is a BUYERS MARKET.  The current  3.85% interest rate should encourage everyone to move forward and invest.  The interest rate is slowly increasing.  The lowest interest rate I have ever seen in 30 years occurred this last week.    Analysts are still predicting an ever increasing interest rate to off set the economic woes we are experiencing.  The current MSI and the interest rate indicate NOW IS THE TIME TO BUY.

SELLERS  If you are considering selling your property in this market, I encourage you start the real estate process.   My best asset is to provide you the best bottom line possible with higher net proceeds.  I have been active in the Rio Grande Valley area since 1988 and established Real Estate Services since that time.  I am experienced working with relocation, builders, foreclosures, existing vacant and owner-occupied homes.  You can expect accountability, consistency, reliability, and responsiveness.  I have experienced this intensive real estate market change in the mid-80's coupled with freezes in 90's, peso devaluations, and interest rate market changes.

Please call Edna Taylor at 956-631-4902 or email EdnaTaylor@McAllenRealtyServices.com for your free market analysis and let's get started.  Thanks, Edna