**From ARMLS STAT:
Pollyanna vs Reality
From time to time there will be a set of numbers within STAT that just jumps at you, this month it was the dichotomy of list prices and sale prices. Over the past year we’ve repeatedly discussed the remarkable stability in our home prices. When we removed all the distressed sales and compared only the normal sales between December 2013 and December 2014, we saw the price per-square-foot rose only slightly, 1.7% from $133.10 to $135.41. When we compared January 2015 prices to December 2014 prices we saw a 1.2% decline in the median sales price and a 0.6% decline in the average sale price.
As we continually state, these monthly anomalies are in no way an indication of declining prices, but only reiterate the remarkable price stability in our market. However, they do amplify the growing disparity between the price of properties listed for sale and the price at which properties are selling.
In January the median list price increased 5.4% over December and the average list price in-creased 7.6%, widening an already existing gap. This gap becomes even more noticeable when we put the numbers side by side. The average list price in January was $354,500 while the average sales price was $255,000. The median list price in January was $230,000 while the median sales price in January was $194,700. Why is the average list price so much higher than the average sales price? If the property being marketed is listed too far above market expectations, reality will manifest in the lack of showings and/or offers leading to a price (reduction? - word missing).
Pending Price Index
Last month our Pending Price Index (PPI) projected a January median price of $195,000 with the actual median coming in at $194,700. Looking ahead to February, the ARMLS Pending Price Index projects a median sales price of $194,822. Prices are expected to remain flat. Sales volume for January was nearly identical to sales volume in January 2014, final numbers showed 4,784 this year compared to 4,797. January 2015 had 20 business days while January 2014 had 21. With both the number of pending sales contracts and the number of UCB listings being greater than last year at this time, it is anticipated that February 2015 sales volume will exceed the volume of 5,474 of February 2014. We may only be taking baby steps at this time but our market is modestly moving forward.
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MikeB Comment: You've no doubt received your own copy of ARMLS STAT in your email (as an ARMLS member). I've attached here as well.
It's a must read for the major talking point to sellers that in the 'flat' market we're currently experiencing, in most cases they cannot hope to push the envelope in price.
The formula for getting a property sold remains the same:
Competitively Position your listing as the 'next best' available in that market segment, all things considered, and it will be the next one sold.
Here is a great YouTube video put on by our brokerage's trainer on the subject.
**Ps. While this is a Valley-centric piece I know that to a greater or lesser degree the same is happening State-wide i.e. the growing disparity between the initial asking price and sale price. So I'm trusting those of you in our Northern and Southern offices can get value from the above. But if this is interesting to you and you want data at your local level read on...
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