Standard & Poor’s Case-Shiller Index, released last week, shows that lower-priced homes appear to be gaining value faster than their higher-priced counterparts, at least in some parts of the Country.
Howard County statistics show a definite increase in the number of units sold, 324 in August of this year vs. 270 in 2011, a 20% increase in units sold. Of those sales, the vast majority fell within the price range of $400,000- $800,000 and were single-family homes with four or more bedrooms. Within this price range, there was actually an increase in the average sold price of 2.83%.
All of the other price ranges within the county showed decreases in value, although those decreases were fairly modest. One reason the lower-price ranges are still struggling, is the unexpected increase in foreclosure properties which hit the market in August. This, coupled with the steady flow of new short-sales, have conspired to keep the values somewhat flat. The majority of the foreclosures and short-sales are concentrated below the $250,000 price point, so it would make sense that this segment of the market is taking a while longer to recover in terms of values.