Analyzing Real Estate Market Statistics
Analyzing Real Estate Market Statistics, Tara Melech, Keller Williams Realty, Pawleys Island, SC (843) 907-8787
When you first take a glance at the Real Estate Market, anyone can tell you that the market has certainly slowed down. But what does that really mean, and is it true? Well, in order to really get a good feel for the current real estate market, wether it be in Pawleys Island, or anywhere else, you have to take a look at the numbers. There are all kinds of numbers to analyze, but when it comes to finding out if a house is a good buy, or if you should think about listing your home, or if you want to invest, etcetera, breaking down the real estate statistics is becoming more and more crucial. I just finished breaking down the 1st Quarter statistics for Pawleys Island for 2011. It tells me several things, but most importantly, I can relay these numbers and break them down even further.
This article is meant to coincide with the market statistics I posted - When looking at the asking price versus the sold price - there is an average of a 7.92% difference, using all 41 records of single family sold properties for the 1st quarter in 2011. In taking a closer look, the biggest percentage difference was that of 1 bedrooms at a whopping 33% difference! In the category of 4,5, 6 bedrooms, there was an average difference of 9%. And lastly, the 3 bedrooms had an average asking vs. sold price of 7%. This is a good statistic.
If you are planning on selling your home, you don't want to price yourself out of the market, especially now, when the peak season is upon us. So, don't price your home more than 10% higher than the actual competition or sold properties. This will keep your home competitive, and sell within the time frame of 200 days. Of course, your home must reflect the value you have chosen to market it at. "It is not you, or your neighbor, or the governor that chooses the price at which your home will sell. In fact, it is the real estate market that predicts this price."
If you are buying a home, and numbers match what the market is doing, then you can expect no more than a 10% price change in asking versus sold price. This is not true for all cases, but on the current average, if a home is priced well, and the condition of the home reflects the price, and not to mention, you really like the home; don't price yourself out of the property because you offered 30% less than the current asking price. Wether you are buying or selling a property, remember to ALWAYS, ALWAYS, ALWAYS, have your realtor do a market analysis on the specified property, so you know where the numbers fall and if they coincide with the current market. This will tell you, among other things, if the property is a good value.
Another category to consider when looking at this percentage difference is the amount of time a property sat on the market before it sold. The average number of days on the market when comparing to the last quarter 2010 is also consistent. It has dropped because the asking prices are within what the market will accept. In one quarter, the average number of days on the market for sold properties dropped from 239 to 200 days. But, on the same token, the average sold price has dropped by 26%. This drop can have alot of factors - one of them being that we already know from looking at the percentage in asking versus sold price, and the amount of time on the market. It has adjusted from the last quarter of 2010 to the 1st quarter of 2011 to reflect a more realistic market. Again, if you break down this number categoricly by the number of bedrooms a property has, you will see the biggest change to those which have less supply. It is the rule "less supply, more demand" that applies here.
When focusing on a specific property, ask the question: how many other homes in my neighborhood am I competing with? Other factors may include competing with foreclosure and short sales. In my most recent analysis, of the 41 sold properties in the 1st Quarter of 2011 for Pawleys Island, 14.63% were foreclosures, 9.76% were potential or lender approved short sales, and 75.61% were sales with no stipulations.
As you can tell, there are so many ways to analyze this data to come to the conclusion that the market can be different for each individual property. That is why it is so important to know what to expect and where the market is headed. Look for more articles on this subject coming soon!
If you are interested in certain statistics for your home, please consider me to help you in finding your way in this real estate market. Thank you for taking the time to read this, and if you should have any questions, please don't hesitate to contact me at your convenience. Tara Melech (843) 907-8787.