If you are kind enough to read these market watch updates every month, I am conscious of not saying the same thing month after month. While the trends continue in the direction we’ve already noted for the past few cycles, it would be easy to say “Ditto last month’s Two Minute Take.”
But you’ve come here for a fresh perspective, hot on the heels of the most current figures (at least that’s what I choose to tell myself!). Keep in mind, that it's still worth noting that inventory is up over last year, there were more new listings this February than last, and the average list price continues to ease up.
But here’s an interesting look behind those numbers. In February of this year, 218 homes sold - 41 of which sold for over list price. That represents nearly 19% of the homes that sold that month. An additional 73 homes sold for exactly the list price. That’s another 33.5%. So more than half the homes that sold in February close at or above the list price.
That leaves 104 homes that sold for below the list price, or 47.4% of the total sold homes.
Of the homes that sold above list price, the average days on the market for those properties was 20 days. Of those that sold for exactly list price, days on the market were 31 days. And for the homes that sold below list price? You guessed it - it was higher: 69 days.
Now, of that group - the ones that sold for less than list price and were on the market 69 days - of those 104 homes, 47 of them had undergone at least one price reduction. These homes were on the market longer, sold for less than the list price, and had to undergo a price reduction before selling.
Of the group that sold for exactly the list price, out of 73 homes, only 17 underwent a price reduction to sell. So these homes were on the market less than half the time, sold for their list price, which only needed adjustment in 23% of the cases.
In the final group - those that sold for over list price - only 6 out of 41 required a price reduction or 14.6%. These homes sold in 1/3 the time of the first group, sold for more than their list price, and only required a reduction in a few cases.
Here’s the thing - no one recognizes that the market has leveled off until AFTER it levels off. But if indicators are pointing towards that being the case - it becomes harder to be in those last two groups - the ones that sell faster and for at or above the list price. It is a wise seller who understands the market fluctuation and positions their home correctly the first time.
