Cromford Daily Observation - There was a significant decline in the number of MLS listings going under contract in October. The total of accepted offers was 8,133 which was down 2% from September (a much shorter month with 17% fewer working days) and it was down 8% from October 2017.
However the decline was not universal across all price ranges. Almost all the decline occurred in the price range up to $225,000. This saw just 2,630 accepted contracts, down 28% from 3,651. Between $225,000 and $350,000 accepted contracts rose 5% to 3,226 while between $350,000 and $800,000 they grew 10% to 2,003. Between $800,000 and $2 million there was a slight decline of 1% to 240 while over $2 million we saw a 31% increase to 34.
Seeing the huge drop-off in contracts under $225,000 we expect to see a strong upward trend in average price per sq. ft. over the coming months, since the mix of homes closing will be skewed towards the higher end.
This is why having a solid real estate agent who understands trends and can read the market will save you time and money. If you think because the overall average price went up without looking at the above you may be inclined to list your house to high. This will cause you to become "market worn" and statistics show you will actually net less then had you priced it right to begin with. This doesn't count the time, energy and expenses you lost by being on the market longer.
Imagine you sat on the market 2 months longer than you should have. You've netted less money and you're frustrated with the process and your agent. This is minor in comparison to the cost you incurred over the long term in a market with rising interest rates. Let's say over that time you saw a modest increase in interest rates. This will be an expense you have to live with for years!! Simply because you didn't understand the stats.
Yes, data matters. But understanding and interpretation of that data are even more important.
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