Home sales remained slow in Polk Country during the first quarter of this year, but showed some improvement compared to the same period last year.
The number of homes sold in the first three months of this year was up 20 percent from the first quarter of 2009 and the value of the homes sold was up 41 percent.
According to figures from the Tryon-Polk County Association of Realtors, a total of 25 houses were sold in the first quarter of this year with a total value of $4.64 million.
By comparison, the county recorded 21 home sales in the first quarter of 2009 with a value of $3.29 million.
The average value of homes sold in the first three months of this year was $185,374, an increase of 18 percent from the average of $156,642 a year ago.
However, both the inventory of homes on the market and the length of time it takes to sell a home have not improved.
In the first quarter of 2010 the Tryon-Polk County Association of Realtors reported 365 active residential listings, up from 335 in the first quarter of 2009.
The average number of days on the market in the first quarter was 257, up from 255 in the same period a year ago.
If the county continues the same pace of sales seen in the first quarter of this year, it could take a few years to work through the existing inventory.
Paul Pullen, owner of Coldwell Banker Town and Country in Tryon reports that buyers continue to face challenges obtaining financing for homes over $400,000.
Pullen says its difficult to find banks willing to lend money with reasonable rates, down payments and terms. He says money is available through government programs for lower priced homes, but those programs have limits on incomes for the buyers.
“This keeps higher income earners limited in financing options,” he says.
Pullen reports that only one of the 25 home sales in the first quarter of this year was for a home valued at more than $400,000. In the first quarter of 2009, only two sales were over $400,000.
He also reports that sales of homes picked up in the fourth quarter of last year due to first time home buyer credits, however that effect faded in the first quarter of this year.
During the last three months of 2009, a total of 30 homes were sold with an average value of $255,563. The Tryon-Polk County Realtors Association reported 357 active listings in the quarter and an average of 221 days on the market.
Only three of the sales in the fourth quarter were for homes over $400,000.
Overall, real estate and development activity remains much slower in Polk County than what was experienced in the boom years leading up to the recession.
In the fourth quarter of 2005, Polk County recorded 215 sales of homes and land with a value of $40.71 million. In 2006, fourth quarter sales included 220 properties valued at $39.66 and in 2007 the fourth quarter totals fell to 178 properties valued at $33.46 million.
Even during those busy years for real estate, fourth quarter sales were relatively light.
Between 2005 and 2007, the county averaged 1,040 sales of property or homes per year, or an average of 260 per quarter. The peak came in 2006 when 1,230 properties changed hands with a total value of $250 million.