What’s Going on with New Albany’s BigÂ Homes ?
People often ask me, “Wow, what’s going on the all the big $ MillionÂ homes on the market in New Albany,Â aren’t they selling?”Â The short answer is yes they are.Â ButÂ when we look back in time and dig a little we can see some interesting things emerge.
Drill Down to the Detail
While there is no denying that a reduction from 23 homes sold in 2005 to 7 homes sold in 2009 is staggering, closer examination reveals that much of the fall off was in new construction.Â The resale for large homes market didn’t really move that much; 5 to 4.Â Â
Good News for Sellers of $1M+ Resale Homes? Yes and no.Â Â
So far this year there have 5 sales In New Albany vs 7 for all of last year. There are far fewer new McMansions for sale with which to compete. But, as of this posting there are overÂ thirty $1M+ available for sale.Â Based on even the accelerated rate of sales for the first four months, that’s a 24 month supply of inventory.
Your Eyes are not Deceiving You
The large number ofÂ $1M+ New Albany homes currently for saleÂ might give the impression that sales are off.Â But in fact, resale is slightly ahead ofÂ Â historic levels.Â It is the inventory level that is high.Â Unfortunately, for those of us who own these homes, there will continue to be price compression until the inventory comes more into balance with supply.