Early Spring sales pace something to keep an eye on–and maybe act on

Back in February I wrote about the bloom that Spring often brings to the local real estate market—at least historically speaking. Last year over a 150 day period which began in April, we saw a 80% increase in the number of homes sold compared to the activity level from the beginning of the year, to the beginning of the Spring cycle.

We’re starting to see some real signs of that same thing happening already.

If we only look at the activity since the end of March to the end of April, the number of homes which have sold in our local market has increased 40%. As I talked about in the February article, the pace of sales over the Winter months slows down quite a bit, so the recent impressive increase is in part a function of that depressed baseline. However, some of the information inside of the increase are very interesting, and may be telling.

The increase in the pace of sales might be because the pricing of homes by the sellers of those homes has (seemingly) been in line with what buyers (and lenders) have been willing to act on and close on fairly quickly. Last month, after being listed for sale, about 32% of all the homes that sold in our local market area, did so in 30 days or less. And the prices levels they received were pretty impressive.

On average, the homes that sold in 30 days or less, closed escrow at 102% of their list price. Averages don’t always tell the whole story; buyers have been known to overpay from time to time. When we look a little closer at the numbers, the results are still impressive. Of the homes in that group, 85% of them sold for 98% of their list price, or higher. As an agent, that tells me a couple of things: Together with their agents, Sellers are pricing their homes correctly; and, the lenders (who appraise the homes before approving the mortgage for the buyer) are in agreement with the property values.

Another encouraging piece of information; Sellers seem to be willing to make the necessary adjustments to sell their homes. If we look beyond the previous group just a little bit, we see another set of sellers that closed escrow between 31 and 45 days after going on the market. They however, had different returns on the pricing side. The homes that sold in that timeframe, received 97% of their list price— which is very good.  We see a big drop however, in the percentage of those that received higher than their asking price— that number was 27%; in previous group that number was 71%. About 55% of the second group sold at 98% of their list price or higher.

Now that May is here, it will be interesting to see how the next 90 days play out. If you’re considering selling, the buyers (and the loans) are there. If you’re a buyer, the prices seem to be in line with the values. So far, anyway.


Categories: LATEST NEWS

Author:Marino Real Estate

Specializing in residential and commercial real estate sales for the better part of a decade, my approach to real estate involves establishing a trust with my clients, that contributes to the ultimate success of our transaction. Whether it is a personal residence, or an investment property, I am committed to negotiating the best deal for my clients, and have enjoyed a history of meeting the important and unique needs of the many clients which have entrusted me with thier real estate goals.

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