Toby wrote this article for the Locust Curve Homeowners Association newsletter that is publshed each quarter. Thought I'd share it here...
“How’s the market?”
Easily the most common question, I’ve received since becoming a Realtor®. And the answer remains the same, “good, if you’re patient.”
What does that mean? Comparing sale price and days on market, we can find an interesting trend.
Sale Price
Through Sept. 1, the average home price in Locust Curve ($190,344) and Delaware ($159,687) are at their highest mark in the past five years. In 2006, Locust Curve has had 18 homes sold with a low sale price of $161,500 and a high of $249,900. Selling your home in Locust Curve today, on average, would net you 12% more than it did five years ago (compared to 14% in Delaware as a whole). Locust Curve sale prices are 4% higher than last year, while Delaware is running 5% higher. A minor difference when you figure that Locust Curve does about 6 percent of the volume the city does – and the community’s higher base price to begin with.
Days on Market
This is what has everyone nervous about putting their home on the market. For the past four years a home in Locust Curve sold in, on average, 99 days. However, this year it has ballooned by almost two months to 168 days. Delaware has also seen a bump, averaging 95 days so far this year after averaging 93 days the previous four years.
Why the increase? There is not a single reason that has increased the days on market. However, there are several factors that we can point to.
- While we are facing the highest days on market compared to our neighbors, Lantern Chase (134) and Troy Farms (133) are also looking at more than four months, while Carson Farms (88) and Lexington Glen (87) are still in the three month range.
- More than six percent of our development is currently on the market, and the numbers aren’t much better in other developments.
- In a buyer’s market, higher-priced homes don’t sell as quickly. In large part this is due to the need for the sale of another home to purchase the higher-priced home. If your prospective buyer has to sell her home – and it is going to take longer – then it makes sense that your home will take longer to sell.
- Continued building in the development behind Locust Curve is also hindering the sale of our homes.
What Does All This Mean
Recently the Columbus Dispatch ran an article on how horrible the market is – and how bad things are for sellers. The article looked primarily at the inventory of homes for sale – which on a micro level boils down to how many days your home could be on the market. And if that is all you look at then, you are right this is a horrible market.
My response to the article is that you have to look at the first two points – sellers are making more money than they did last year and getting basically what they ask for on the original list price. Is waiting an extra two months worth that?
If not, then you are going to have to discount your house to make it more attractive to buyers and generate an offer on your home. Some experts are predicting that sale prices will begin to drop later this year as seller’s battle for potential buyers. However, there are also those that point to the sales price to show that things aren’t that bad. Which is right? Only time will tell.
But for right now, the market is “good, if you’re patient.”
Toby Boyce is a Realtor® with Disbennett Real Estate Company and resides in Locust Curve, he can be reached at toby@tobysellshomes.com or 990-9748.
0 comments:
Post a Comment