Image via Wikipedia
What changed from 3rd quarter 2010 from same time period 2009? Let’s take a look:
2009
- Number of Homes Sold: 200
- Lowest Priced Home: $195,000
- Highest Priced Home: $3,450,000
- Median Price: $751,750
- Average Price: $872,280
- Days on Market: 72
- Listing Price to Sale Price Ratio: 93%
2010
- Number of Homes Sold: 147 down about 25% from 2009
- Lowest Price Home: $288,000
- Highest Priced Home: $3,550,000
- Median Price: $822,500 up about 10% from 2009
- Average Price: $948,083
- Days on Market: 74
- Listing Price to Original Sale Price Ratio: 93% (before price reductions)
2009
$150K-199K 1 home sold at 37% of original listing price of $528,000 (OLP original list price)
$300K-349K 2 homes sold at 105% OLP
$350K-399K 4 homes sold at 92% OLP
$400K-449K 9 homes sold at 96% OLP
$450K-$499K 7 homes sold at 95% OLP
$500K-599K 41 homes sold at 95% OLP
$600K-699K 20 homes sold at 94% OLP
$700K-799K- 27 homes sold at 95% OLP
$800-899K 17 homes sold at 94% OLP
$900K-999K 16 homes sold at 93% of asking price
$1000M-1.499M 41 homes sold at 92% of asking price
$1.500M-1.999M 9 homes sold at 90% of asking price
$2.000M-2.499M 3 homes sold at 87% of asking price
$3.000M-3.999M 2 homes sold at 70% asking price
2010
$250K-299K 1 home sold at 89% of OLP
$300K-349K 1 home sold at 90% of OLP
$350K-399K 2 homes sold at 82% of OLP
$400K-449K 6 homes sold at 97% of OLP
$450K-499K 4 homes sold at 95% of OLP
$500K- 599K 14 homes sold at 93% of OLP decrease of 27 homes from 2009 or 65% fewer
$600K-699K 17 homes sold at 97% of OLP decrease of 3 homes
$700K-799K 25 homes sold at 95% of OLP decrease of 2 homes
$800K-899K 15 homes sold at 94% of OLP decrease of 2
$900K-999K 14 homes sold at 95% of OLP decrease of 2 homes
$1000M-1.499M 31 homes sold at 91% of OLP decrease of 10 homes or 20% fewer
$1.500M-1.999M 12 homes sold at 93% of OLP increase of 3 homes
$2,000M-2.499M 2 homes sold at 94% of OLP decrease of 2 homes or 50%
$2.500M-2.999M 2 homes sold at 83% of OLP increase of 100%
$3.000M-3.999M 1 home sold at 95% of OLP
So what do these numbers mean? The $500,000 to $600,000 was most probably a direct result of expiring tax credits, therefore a 65% drop in volume. The very high-end and the low-end suffer from the most unrealistic sellers; hence a 70% OLP for the one house sold at $195,000 originally listed at $528,000, with 82 days on the market. The one high-end house averaged 12 days on the market, and sold for 95% of asking, ( realistic seller) while 2009 2 houses sold at 70% of original list price of $4,998,500 and sale price of $3,622,500 and stayed on the market for an average of 456 days. I foresee a slight decrease in volume for the rest of 2010 but prices remaining steady. Inventory is building, about 20% in the past month, I have also noticed an uptick in price changes, which will be necessary to get stagnant inventory moving. In the meantime, we will wait and see whether patience rewards the buyer or the seller. My money is on the buyer.
On another matter, I am starting to sound like a broken record, pricing matters and buyers should not be relying on the SELLER’S agent to buy a property. The idea that you are going to receive a “discount” because you don’t have a broker is ludicrous. The contract is between the seller and the real estate firm the agent works for, not the individual agent. The agent cannot renegotiate the commission for his or her company. Is there a little leeway– yes, but not enough to go in blind, and I am amazed at how naive some buyers continue to be.
Szerlip's Real Estate Blog 