Pending Sales & Sales Success
In the Central Virginia Multiple Listing Service, Pending Sales for February are up by 20.73% to 1,124 versus February of last year at 931 that went under contract. With 2,640 newly listed homes this month and 1,124 under contract, the sales success index of 42.58% for February advanced 27.54% versus last year’s index of 33.38% in 2010.
Average Prices
According to the February 2011 statistics, our market area has experienced some downward momentum with the decline of average prices at closing. Prices dipped 16.70% to $178,686 versus the previous year February at $214,496. This is a difference in price of $35,810.
Cautionary Note: This does not mean that the value of an average home went down. It is an indication that there are more buyers for lower priced homes.
New Listings & Months Supply of Inventory
New Listings in this area for the month of February yielded 2,640 available resale dwellings. This was a decline of 5.34% or 149 units in comparison to February 2010. The total housing inventory at the end of February dipped by 9.67% to 11,846 existing homes available for sale. At an average of 1,047 closed sales per month over the last 12 months (March 2010 - February 2011), represented an unsold inventory index of 11.32 Month Supply of Inventory for Central Virginia.
Bottom of the Market
Volatility is the norm for the bottom or top of the market. It is hard for prices and demand to reflect immediately on each other but we are seeing stronger demand and if it continues prices will go up. Reports of multiple offers are occurring more frequently. The only way to know for sure whether this is the bottom is to look back a year or two from now. At that time we will be saying; "I hit the bottom just right" or "I wish I had bought my house earlier and gotten more for my money."
Data Compiled From Central Virginia Regional MLS by RE Stats. on March 3 2011.
Showing posts with label Pricing. Show all posts
Showing posts with label Pricing. Show all posts
Friday, March 4, 2011
Wednesday, June 30, 2010
I WANT THIS HOUSE FOR LESS!
I was recently told that I needed to convince a seller, through their agent that a home was over-priced. When that is the case, I feel that I do a pretty good job of selling the right arguments. However, whether it is truly over-priced or not, chances are it will remain that way on the market.
Some observations from 14 years in real estate:
1. Sellers don't change their mind about the value of their home. They may acquiesce to the market, but if they do, they feel cheated.
2. Buyers don't change their mind about the value of the home they are buying. If they negotiate up, they almost always feel like they should have gotten it for less.
3. Most people buy for emotional reasons, logic takes a back seat.
4. Sellers have agents that usually study the market, and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
5. Buyers that are represented, have agents that usually study the market and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
6. Agents need to present information to their clients and let them make the decision.
7. Buyers that chase value, often find it.
8. Buyers that chase deals, in a market where there is competent representation on the other side, seldom find them.
9. Buyers that chase deals, often get no value.
10.REALTORS® subscribe to a code of ethics that includes “honesty” and “truth.” Most REALTORS® take it very seriously.
There are others, but the most important thing to remember when making an offer is that everyone has information and has come to their own conclusions based on their thought processes. Those thought processes are usually a mix of logic and emotion, and are often dominated by the emotional side of the equation.
I always welcome your comments.
Some observations from 14 years in real estate:
1. Sellers don't change their mind about the value of their home. They may acquiesce to the market, but if they do, they feel cheated.
2. Buyers don't change their mind about the value of the home they are buying. If they negotiate up, they almost always feel like they should have gotten it for less.
3. Most people buy for emotional reasons, logic takes a back seat.
4. Sellers have agents that usually study the market, and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
5. Buyers that are represented, have agents that usually study the market and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
6. Agents need to present information to their clients and let them make the decision.
7. Buyers that chase value, often find it.
8. Buyers that chase deals, in a market where there is competent representation on the other side, seldom find them.
9. Buyers that chase deals, often get no value.
10.REALTORS® subscribe to a code of ethics that includes “honesty” and “truth.” Most REALTORS® take it very seriously.
There are others, but the most important thing to remember when making an offer is that everyone has information and has come to their own conclusions based on their thought processes. Those thought processes are usually a mix of logic and emotion, and are often dominated by the emotional side of the equation.
I always welcome your comments.
Saturday, November 7, 2009
TIMING HOME PURCHASES
Much has been said today of the first time homebuyer tax credit extension and expansion to current home owners. For details, I suggest this as the most complete. NAR
Zip Realty TV
Aside from the money, what does the tax credit mean to you and why worry about it now? The expectation is to keep the housing market moving in the right direction. After all, doesn’t it make sense that if you might buy a home in the next 18 months or so, that you do it while you can get the gift of a tax credit? Why would you leave that money on the table?
However, keep in mind that that “right direction” is more of what we are seeing in the lower price ranges, with competing offers, and fewer concessions on homes that may be gone before you see them.
Here are some additional reasons to think about the tax credit now:
New construction
For anyone that wants to build a home, it is important to understand that the process from contract to closing often takes in excess of six months. The actual construction is only a part of the time that goes into the process, with permitting and county inspections absorbing up to two months while customized plans, selections and title work easily can absorb another.
Contracts for a home to be built in time to take advantage of the tax credit need to be in place before the end of the year. That means there are about 45 days to choose a community, builder, lot and plan.
Buyers that must sell a home
No one can say how much time it will take to sell your home. Each situation is a little different. It’s hard to say how long sold homes have been on the market. Through a quirk in our MLS system those numbers are hard to come by, because “days on market” refers to the current listing period only.
We do know that there was approximately an 8 1/2 month supply of homes on the market at the end of last month, assuming last months rate of sales would continue. Even in the faster moving under $200,000 market, there is approximately a 6 month supply.
Even if you don’t want to be on the market during the holidays, now is the time to sit down with your REALTOR® and put together a plan. Waiting may cost the $6,500 tax credit.
Homes that will be financed
Interest rates are near historic lows. How long that will last is anybody’s guess. If we are indeed in a recovery, as it appears, some inflation is to be expected and that means higher interest rates.
Higher interest rates translate into decreased buying power for purchasers. For sellers higher rates mean fewer people can actually afford the home.
Only you can decide what is best for you and your situation, but now would be an excellent time for you to sit down with a REALTOR® so that you have all of the information to make a good real estate decision.
Zip Realty TV
Aside from the money, what does the tax credit mean to you and why worry about it now? The expectation is to keep the housing market moving in the right direction. After all, doesn’t it make sense that if you might buy a home in the next 18 months or so, that you do it while you can get the gift of a tax credit? Why would you leave that money on the table?
However, keep in mind that that “right direction” is more of what we are seeing in the lower price ranges, with competing offers, and fewer concessions on homes that may be gone before you see them.
Here are some additional reasons to think about the tax credit now:
New construction
For anyone that wants to build a home, it is important to understand that the process from contract to closing often takes in excess of six months. The actual construction is only a part of the time that goes into the process, with permitting and county inspections absorbing up to two months while customized plans, selections and title work easily can absorb another.
Contracts for a home to be built in time to take advantage of the tax credit need to be in place before the end of the year. That means there are about 45 days to choose a community, builder, lot and plan.
Buyers that must sell a home
No one can say how much time it will take to sell your home. Each situation is a little different. It’s hard to say how long sold homes have been on the market. Through a quirk in our MLS system those numbers are hard to come by, because “days on market” refers to the current listing period only.
We do know that there was approximately an 8 1/2 month supply of homes on the market at the end of last month, assuming last months rate of sales would continue. Even in the faster moving under $200,000 market, there is approximately a 6 month supply.
Even if you don’t want to be on the market during the holidays, now is the time to sit down with your REALTOR® and put together a plan. Waiting may cost the $6,500 tax credit.
Homes that will be financed
Interest rates are near historic lows. How long that will last is anybody’s guess. If we are indeed in a recovery, as it appears, some inflation is to be expected and that means higher interest rates.
Higher interest rates translate into decreased buying power for purchasers. For sellers higher rates mean fewer people can actually afford the home.
Only you can decide what is best for you and your situation, but now would be an excellent time for you to sit down with a REALTOR® so that you have all of the information to make a good real estate decision.
Monday, October 26, 2009
Getting the best price on your new home
The seller sets the list price of a house with the aid of their agent. In Richmond, VA this usually is very close to the selling price of the home, but not always.
The first step in the process of obtaining the best price is to learn about the values of homes and how different neighborhoods affect those values. This process starts with a broad exposure to homes in the market so you may judge value for yourself. Once you have an idea of the value of the market in general there will be an examination of current pricing trends and of the effect of the location of the home in a neighborhood.
The information above will allow you to determine the value of the home for yourself. Now is the time to consult a REALTOR® to see how the market is corresponding with the value you place on the home. To do this you need a comprehensive Comparitive Market Analysis. Much like an appraisal the CMA will let you know what other people are likely to be paying for the home and it may or may not agree with the list price.
If this is the home that you definitely want then the best price is the one that allows you to purchase it without giving away your money. Armed with the information on pricing above you will know what that number is so that you can negotiate for that amount.
The first step in the process of obtaining the best price is to learn about the values of homes and how different neighborhoods affect those values. This process starts with a broad exposure to homes in the market so you may judge value for yourself. Once you have an idea of the value of the market in general there will be an examination of current pricing trends and of the effect of the location of the home in a neighborhood.
The information above will allow you to determine the value of the home for yourself. Now is the time to consult a REALTOR® to see how the market is corresponding with the value you place on the home. To do this you need a comprehensive Comparitive Market Analysis. Much like an appraisal the CMA will let you know what other people are likely to be paying for the home and it may or may not agree with the list price.
If this is the home that you definitely want then the best price is the one that allows you to purchase it without giving away your money. Armed with the information on pricing above you will know what that number is so that you can negotiate for that amount.
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