2011 was an interesting year for Danville real estate, and given the state of the economy, I think it was a relatively good year. Sales and the sales price as a percent of the list price were up, while months of inventory were down from 2010. Prices, however, moved lower and homes were on the market a little longer in 2011. The following table summarizes the year for single family detached homes in Danville.
543 sales closed in 2011, a 9% increase from 497 in 2010. Sales increased sharply at the end of 2011 and the last three months had significantly more sales than their counterparts from 2010. The following chart shows the number of closed sales by month for the past two years.
The median sales price was 5% lower in 2011 ($805,500) than in 2010 ($847,000), a difference of $41,500. The average price per square foot was also lower in 2011. On average homes sold for $323 per square foot in 2011, down from $342 in 2010. While the number of sales increased toward the end of 2011, prices weakened, as can be seen in the following chart which shows the median sales price by month for the past two years.
The average property sold for 96% of the list price in 2011, up from 95% in 2010. The highest price paid for a home in Danville in 2011 was $2.9 million, just slightly less than the highest price paid in 2010 ($3.0 million). The lowest price paid was $267,000, down from $401,330 in 2010.
The average home was on the market slightly longer in 2011 than 2010 (46 days versus 43 days, respectively). The average month-end inventory level was 5% higher in 2011 than 2010, but there were fewer months of inventory, on average, relative to pending sales. 3.7 months of inventory were on the market, on average, in 2011, compared to 4.1 months in 2010. As can be seen in the charts below, inventory fell through the second half of 2011, while the months of inventory moved in a fairly narrow band.
Short sales and REO accounted for nearly 26% of closed sales in 2011, up from about 21% in 2010.
The statistics for Danville were mixed for 2011 but I think they belie an underlying strength. Demand remained strong and inventory levels are good. Given the state of the economy, the decline in the median sales price was expected.