New Prague Real Estate Monthly Market Update – July, 2008

Having grown up in the town of New Prague, I thought we at the very least should take a look at some market stats for this great city. Unfortunately, as many have seen and read in the various local newspapers, New Prague was at the center of a mortgage fraud scandal this year. In spite of this, some positive things are definitely happening real estate-wise in my hometown.

First comparing July of 2008 to July of 2007, there have been 46.7% less listings put onto the market in New Prague. 16 properties went active onto the MLS this past July. Only four properties closed in July of 2008, compared to six in July of 2007. The average sales price has dropped drastically, from $276,650 to $181,950. This is a drop of 34.2% year over year. The percent of original list price received at the time of sale dropped from 93.3% to 92.3%. Average days on market for a property in New Prague rose from 176 to 199 days. The inventory level of single family homes in New Prague dropped from 103 to 69 this past July. The townhome and condo inventory level also dropped, from 29 to 13 active MLS listings.

Comparing January through July of 2007 to January through July of 2008, there have been 4.6% less listings put onto the market this year. 165 properties have gone active on MLS this year. Pending sales dropped from 36 to 25; this is a decrease of 30.6%. The average sales price fell 37.6%, from $273,825 to $170,964. The percent of list price received at the time of sale dropped 2.4%, from 92.1% to 89.9%. Average days on market has actually decreased in New Prague, from 206 to 165 days.

In conclusion, the average sales price of a property has really taken a drastic drop in New Prague. With so many REO homes on the market and lenders slashing prices on these listings, the average sales price drop is unfortunately not a surprise. However, this great city will come through this. In addition to a wonderful school system and vibrant community, New Prague has so much to offer potential buyers. And yes, over time, New Prague real estate values will once again increase.