This past couple of months we've seen an increase in sales and a leveling of prices, indicating to me that we've hit bottom and are now hoping to see property values on the rise. The inventory of homes for sale has dropped and buyers looking for specific types of properties are anxious to see what will be listed for sale next.
That's good news for buyers because prices aren't going to sky rocket anytime in the near future, allowing them to still get good deals at reasonable rates And it's good news for sellers, although they won't see the dramatic rise they were hoping for. Both the $6500 and $8000 tax rebates on a home purchase have expired, interest rates are slightly up, and we're back to basics.
Property listings are the life blood of all agents and we vie for each and every one. We hone our marketing skills and work to get the properties sold as quickly as possible and at the best possible price. Attempting to assign a current fair market value is where the science comes in. It may not be an exact science, like math or chemistry, where A+B always = C, but it's a 'science based on past sales and current trends, analyzed together, to come up with the best possible listing price for that property at that time. And we try to explain to sellers that equates to a reasonable place to start, may not hold up over the life of the listing. Price adjustments are almost always inevitable. As the market ebbs and flows, so do listing and sales prices.
But listing homes for sale is still difficult because most sellers don't want to believe the one universal truth...if it's priced right for the market, it will sell. If it isn't, it won't. Similar in some ways to the 'if you build it, they will come' theory for new construction, everything will sell over time if the asking price and the buying price make good economic sense. Recently, and probably for a long time to come, the lower prices made good economic sense to buyers...and threw sellers for a loop. No one wants to hear the reality that their home is worth less than they would like it to be.
None of us has a crystal ball. We can only follow trends and history. My approach to listing and selling property is based on data taken from the sales statistics and knowledge of the local neighborhoods. I look at what seems to be happening in each area of the county and specific neighborhoods and give the best information I can find to help with the pricing decisions.
Last week I saw that owners I'd been talking to for over 6 months listed with another agent for $100,000 over the sale price of anything else in their neighborhood. Apparently my counseling on fair market value and appraisal issues didn't make any difference once they found someone who would tell them what they wanted to hear. Sure their home is lovely and has lots of bells and whistles. But it won't appraise at anywhere near that asking price. I guess it's listed 'just in case' that one-in-a-million cash buyer, who's been out of touch with economic realities, happens to stop by. And the listing agent gets to have a good looking property on multiple public real estate websites and can divert calls that come in on this listing to other properties that make more economic sense.
And just yesterday an owner in my very own neighborhood listed with another agent at much lower than the price I recommended 12 months ago, and lower than what is currently fair market value, for sure. Last year they were angry with my assessment of value, thinking it too low. Now they have a listing agent who isn't familiar with the neighborhood, didn't take it's recent sales and location into account, and who has UNDER priced the home by close to 20%!
I'm obligated to supply buyers with information on recent comparable home sales when they are out looking to buy a home. And I'm also obligated to give the same type of data to sellers when they are ready to list their property. Why does one group value that information and the other find it appalling?
Saturday, May 1, 2010
Statistics Do Tell The Story
Reprinted in part from my newsletter...
2008 VS 2009 sales in Indian River County...and the first 45 days of 2010
Here are some statistics as taken from the MLS of the Realtor Association of Indian River County comparing the sales in 2008 to those in 2009.
Single family home sales on the mainland in Vero Beach were up nearly 40% in 2009 as compared to 2008, while the average and median price of homes dropped significantly.
In 2008 there were 708 homes sold on Vero’s mainland with an average sale price of $215,395 and median sale price of $175,000, as compared to 989 in 2009 at an average sale price of $151,674 and a median sale price of $133,000.
Single family home sale on Vero’s island rose 16% from 216 in 2008 to 251 in 2009 while a drop in the average and median price. In 2008 the islands average sale price was $933,770 with a median of $577,500, while in 2009 it fell to an average of $831,542 and median sale price of $460,000.
Single family home sale in Sebastian and the north Indian River County rose 23% in 2009 to 486 from 395 in 2008 but median and average prices fell. Here the 2008 sale price average was $154,025, median $142,000, while in 2009 they dropped to an average of $130,000 and median of $115,000.
Condominium sales on the mainland of Vero Beach rose just under 14%, from 233 total sales in 2008 to 265 in 2009. And as has been the trend, the median and average sale prices dropped in 2009 to $90,887 average and median $70,000 from 2008 average of $122,700 and median of $90,000.
The number of island condo sales stayed level with 146 in 2008 and 151 in 2009 but, as expected, average price went from $495,384 in ’08 to $373,556 in ’09 and median dropped from $355,000 to $266,000.
Condo sales in Sebastian and the north county more than doubled in 2009 at 48 total, up from 20 in 2008. Average condo sale price went down from $167,325 in 2008 to $127,539 in 2009, and the median price fell from $148,750 to $122,250.
And for the month of January in 2010 the statistics show 12 single family home (average sale price of $686,250, median of $407,500) and 13 condominium sales ($396,615 average sale price and $378,000 median) on Vero’s island; Vero Beach mainland sales of 59 single family homes (average sale price $140,576, median price of $126,000) and 12 condo sales (average $122,125 and median of $85,000); Sebastian and the north county show 31 total single gamily homes sales (Average $133,170, median $127,900) and only 4 condo sales averaging $142,875 (median $142,250).
Statistics for the he first half of February show sales holding steady county wide. The MLS data for the period of February 1-14, 2010 shows 9 single family and 4 condo sales on Vero Beach’s island; 26 single family home and 8 condo sales on Vero’s mainland; and 16 single family homes and 1 condo sale in Sebastian and the north county.
We are selling in all price ranges and styles, all ages and conditions of structure…new, old, and everything in between. And the rentals are going fast, too! This is certainly a great time for buyers to take advantage of low mortgage rates and low house and condo prices that seem to have leveled a bit. Realistic sellers are feeling more confident now and our market picture is looking brighter! Maybe we are at the turning point? Stay tuned….
2008 VS 2009 sales in Indian River County...and the first 45 days of 2010
Here are some statistics as taken from the MLS of the Realtor Association of Indian River County comparing the sales in 2008 to those in 2009.
Single family home sales on the mainland in Vero Beach were up nearly 40% in 2009 as compared to 2008, while the average and median price of homes dropped significantly.
In 2008 there were 708 homes sold on Vero’s mainland with an average sale price of $215,395 and median sale price of $175,000, as compared to 989 in 2009 at an average sale price of $151,674 and a median sale price of $133,000.
Single family home sale on Vero’s island rose 16% from 216 in 2008 to 251 in 2009 while a drop in the average and median price. In 2008 the islands average sale price was $933,770 with a median of $577,500, while in 2009 it fell to an average of $831,542 and median sale price of $460,000.
Single family home sale in Sebastian and the north Indian River County rose 23% in 2009 to 486 from 395 in 2008 but median and average prices fell. Here the 2008 sale price average was $154,025, median $142,000, while in 2009 they dropped to an average of $130,000 and median of $115,000.
Condominium sales on the mainland of Vero Beach rose just under 14%, from 233 total sales in 2008 to 265 in 2009. And as has been the trend, the median and average sale prices dropped in 2009 to $90,887 average and median $70,000 from 2008 average of $122,700 and median of $90,000.
The number of island condo sales stayed level with 146 in 2008 and 151 in 2009 but, as expected, average price went from $495,384 in ’08 to $373,556 in ’09 and median dropped from $355,000 to $266,000.
Condo sales in Sebastian and the north county more than doubled in 2009 at 48 total, up from 20 in 2008. Average condo sale price went down from $167,325 in 2008 to $127,539 in 2009, and the median price fell from $148,750 to $122,250.
And for the month of January in 2010 the statistics show 12 single family home (average sale price of $686,250, median of $407,500) and 13 condominium sales ($396,615 average sale price and $378,000 median) on Vero’s island; Vero Beach mainland sales of 59 single family homes (average sale price $140,576, median price of $126,000) and 12 condo sales (average $122,125 and median of $85,000); Sebastian and the north county show 31 total single gamily homes sales (Average $133,170, median $127,900) and only 4 condo sales averaging $142,875 (median $142,250).
Statistics for the he first half of February show sales holding steady county wide. The MLS data for the period of February 1-14, 2010 shows 9 single family and 4 condo sales on Vero Beach’s island; 26 single family home and 8 condo sales on Vero’s mainland; and 16 single family homes and 1 condo sale in Sebastian and the north county.
We are selling in all price ranges and styles, all ages and conditions of structure…new, old, and everything in between. And the rentals are going fast, too! This is certainly a great time for buyers to take advantage of low mortgage rates and low house and condo prices that seem to have leveled a bit. Realistic sellers are feeling more confident now and our market picture is looking brighter! Maybe we are at the turning point? Stay tuned….
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