Some Sales Mix Changes, '06-'11Posted on Wednesday, April 20th, 2011 at 6:15pm.
This year (Q1 '11), more than a quarter of homes sold for less than $1m – 27%. Statistically, that's a 450% increase in the proportion selling below that magical $1m benchmark.
Our chart here (click to enlarge) draws a pretty stark line between the 2006-2008 period and the past 3 years. The sales mix changed drastically in the first true post-bubble year, 2009.
This year's entry-level sales in the first quarter look more like that year's, with about the same share going for less than $1m. However, with substantially more closed sales this year (64 in Q1 this year, compared to 40 in Q1 '09), that also means more actual homes trading below $1m.
Now, go bigger.
How Q1 of '11 Compares.")
This year, almost all (83%) of the homes sold in MB in Q1 sold for less than $2m – just 17% were above that mark this time.
MB West of Sepulveda fared about the same over this 6-year period. There are always a few more sales above $2m west of the highway.
Though the big-dollar sales seem to get all the headlines, they still made up less than a quarter (22%) of the sales in the first part of 2011, down from 48% in the rush of 2006.
For both MB west of Sepulveda and citywide, we see that the share of homes selling above $2m was at a 6-year low this year.
So, if you sense that entry-level prices and typical prices around MB have come down somewhat dramatically – you're right. And if you think the high end is chugging along as well as ever – well, maybe, but it's no longer a dominant segment of the market.
Nerdy notes: These data on the "sales mix" in MB come from MLS-reported sales in Q1 of the years at issue. We'll take one more look at how sales by price range have changed over recent years in another post soon.
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