Not all Realtors are the same. There is a common misconception that we are all the same and the only real difference is the broker for whom we work.
Each quarter I track the performance of full service brokers compared to MLS Entry Only and Discount brokers. The results have been consistent for the past three years, and here are the latest statistics:
Total listings sold according to the MLS - 1,462.
Full Service brokers - 1,426,
MLS Entry Only and Discount - 46
Expiration rate - percentage of listings that did not sell
Full Service brokers - 562 or 40%
MLS Entry Only and Discount - 27 or 59%
That may not look like a big difference, but think of it this way. You have a 50% GREATER chance that your home will not sell if you list with a MLS Entry Only or Discount broker.
List price versus Sale price
Full Service brokers - 101.6%
MLS Entry Only and Discount -97.5%
So by hiring a MLS Entry Only or Discount broker, on a $400,000 property, you would LOSE 4.1% or $16,400.
A properly priced a marketed home will sell for the highest sale price compared to list price if it sells in the first 30 days on the market. Pricing a home correctly, along with competent marketing are key. In the overall MLS, only about 20-25% sell in the first 30 days, so when hiring a Realtor, the question is: is my Realtor in the 20-25%, or in the 75-80%?
To sum up, homes listed by MLS Entry Only or Discount brokers are less likely to sell 50% of the time. When they do sell, on average they are sold 4.1% less than those sold by Full Service Brokers, so even if they sold your home for free, you'd be losing money.
Atwater Village, Eagle Rock, Glassell Park, Highland Park, and Mount Washington
Market Index - 0.65 - up 1 point.
A market index of above 1.20 is a seller's market, between 0.80 to 1.20 is a balanced market, and below 0.80 is a buyer's market.
The Market Index went up to 0.65, versus 0.64 last month. Last year is was 0.24. This is the 8th month in a row of increases.
New Listings - 57 properties hit the market, up from 49 last month, versus 60 last year.
Pending Listings - 52 listings opened escrow, compared to 49 for each of the last two months, up from 26 in August of 2008.
Pending Ratio - 0.83, down from 1.67, last month, versus 0.43 last year.
Listing Inventory - 161 listings on the market, down from 174 last month, last year was 248. Inventory continues to decline.
Units Sold -62 properties sold, even with last month's 62. Last year 33 homes sold.
Absorption rate - 2.6 months, last month was 2.8 and last year it was 5.9 months. Note: A six-month supply is considered a balanced market.
Average Sale Price -$404,249down from last month's $388,187 and down from last year by 14.82%.
Price Per Square Foot - $295.50, down from last month's $279.88, and down 12.8% from last year.
Conclusions
For buyers - prices are still falling, but so is inventory. At some time prices will begin to level off, so if you are thinking of buying, don't wait too long. The $8,000 Federal Tax credit is being extended to November 30th..
Given the economy it is possible we will remain at the bottom for a while and that prices may continue to fall.
For sellers - preparing your home for sale is the key to getting the best price. Appraisals problems are beginning to have a negative impact on sales prices and may help push prices down further. Ask us for our Highest Property Value Audit to see what we can do to help you sell your home for the most money.
Keith Sorem Realtor DRE #01374635
Data from Itech and SRAR MLS has not been verified, is not guaranteed, and is subject to change
A market index of above 1.20 is a seller's market, between 0.80 to 1.20 is a balanced market, and below 0.80 is a buyer's market.
The Market Index increased to 0.86 from last months 0.85 - A year ago it was 0.31.
New Listings - 20 new listings, down from 25 last month. Last year there were 44.
Pending Listings - 23 listings entered escrow compared to 23 last month, and 12 last year.
Pending Ratio -1.15, up0.22 points from last month's 0.92. Last year the ratio was 0.34.
Listing Inventory -65 properties, down fromlast month's 74. Last year we had 118 listings on the market. Inventory continues to decline.
Sold Listings - 33 listings sold, down from 40 listings last month, and 24 the year before.
Absorption Rate is 2.0 months compared to 1.9 last month and 4.9 months last year. Note: a balanced market is considered to be a six month supply of listings.
Average Sales Price - $601,955, up from last months $557,975 and down from last year's $582,017 or a 3.4% drop.
Price per square foot -$368.84up from last month's $335.18, and down 6.5% compared to last year's $394.59.
Conclusions
The Market Index continues to remain high. Prices are showing signs of increasing and appear to have bottomed out in January. The market is struggling due to the weak economy and the revised appraisal systems in place since May 1st..
For buyers - better plan on paying more, dealing with multiple offers on well-priced properties, and receiving counters from sellers.
For sellers - preparing your home for sale is the key to getting the best price. Beware of appraisal issues, plan ahead.
Keith Sorem Realtor DRE#01374635
Data from Itech and SRAR MLS has not been verified, is not guaranteed, and is subject to change.
A market index of above 1.20 is a seller's market, between 0.80 to 1.20 is a balanced market, and below 0.80 is a buyer's market.
The Market Index is at 0.46 up .03 from last month's 0.43 and last year's 0.22.
New Listings - 19, down from 21 last monthand last year's 17.
Pending Listings - 13 listings opened escrow, down from 15 last month. Last year 5 properties sold.
Pending Ratio - At 0.68, down from 0.71 last month. A year ago it was 0.29.
Listing Inventory - 81 properties, down from 94homes last month and down from 88 last year.
Sold Listings - 24 homes sold, down from 25 last month. Last year 16 homes sold.
Absorption Rate - 3.4 months down from last month's rate of 3.8 months. In 2008 it was 4.2 months.
Average Sales Price -$1,082,896, down from last months $1,514,720 - and down 32.9% from last year.
Price per square foot - $438.472, down from last month's $441.48 and down 13.78% to last year.
Conclusions
The Market Index continues to climb. Unit sales are strong, so demand is slowly outpacing inventory. Prices are continuing their decline. Lack of attractive financing for loans over $729,750 is continuing to plague buyers.
For buyers - if you have been waiting on the sidelines, now might be the time to jump in the game.
For sellers - properly preparing your home for sale is the key to getting the best price. Ask for our Highest Property Value Audit to find out how to maximize your profit (or minimize your loss) when you sell.
Keith Sorem Realtor DRE #01374635
Data from Itech and SRAR MLS has not been verified, is not guaranteed, and is subject to change.
North Hollywood, Sun Valley, Valley Village, Valley Glen, and Van Nuys.
Market Index - 0.77
A market index of above 1.20 is a seller's market, between 0.80 to 1.20 is a balanced market, and below 0.80 is a buyer's market.
The market index is at 0.77, UP 7 points from last month's 0.70. Last year it was at 0.25.
New Listings - 1123 new homes came on the market, compared to 168 listings last month, versus 216 last year.
Pending Listings - 186 opened escrow, versus 190 last month, compared to 161 last year.
Pending Ratio -1.51, up down 1.13last month but up from last year's 0.75.
Listing Inventory - 455 properties are on the market, down from 517 properties last month, compared to 1,102 last year. Inventory continues to decline.
Absorption Rate - 2.9 months, compared to 3.0 last month, way down from 7.6 months one year ago.
Sold Listings -159 homes sold, versus 170 last month, compared to 115 last year.
Average sale price - $328,874 down from last month's $319,908, down 21.4% from last year. Prices are beginning to stabilize.
Price per square foot - $225.76, down slightly
from last month's $226.27, down 19.8% from last year.
Conclusions
Although the market activity is still increasing, sales are increasing, so inventory continues to decline. An Absorption Rate of six months is considered a balanced market, and we are down to a three month supply of listings, which should result in prices going back up.
For buyers - this may be the bottom of the market. The Federal tax credit has been extended to November 30th, so do not wait if you want to take advantage of this credit.
For sellers - preparing your home for sale is the key to getting the best price. Ask for our Property Value Audit to learn how to maximize your profit when you sell.
Keith Sorem Realtor DRE #01374635
Data from Itech and SRAR MLS has not been verified, is not guaranteed, and is subject to change.
A market index of above 1.20 is a seller's market, between 0.80 to 1.20 is a balanced market, and below 0.80 is a buyer's market.
The Market Index UP 3 points to 0.60.
New Listings - 63 new listings this month, compared to 74 last month and 88 a year ago.
New Pending Listings - 63 listings entered escrow, compared to 57 last month, and 38 in 2008.
Pending Ratio -1.00, up from 0.77, last month. A year ago it was 0.55.
Listing Inventory - 197 listings, down from 212 last month. In 2008 we had 334 listings.
Sold Listings - 56 homes sold, down from 63 last month an d 77 last year.
Absorption Rate -3.5 months, up slightly from 3.4 months last month. A year ago it was 5.5 months.
Average Sale Price - $560,864 UP from last month's $538,348 and down 14.7% from last year.
Price Per Square Foot - $372.17, downfrom $320.83 last month, and down 5.8% compared to last year.
Conclusions
The Market Index continues climb, unit sales are strong, so demand is slowly outpacing inventory. Prices are beginning to show signs of increasing since May.
The price per square foot has been increasing since February.
For buyers - this may be the bottom of the market.
Multiple offers and appraisal issues are becoming more common. For those trying to take advantage of the $8,000 Federal tax credit time is running out.
For sellers -Ask for our Highest Price Home Audit to learn how to maximize your profit when you sell. Homes properly prepared for market will net you the highest profit when you sell. Buyers have fewer choices with fewer homes on the market, but many homes are distressed sales, keeping a lid on increases in value for the time being.
Keith Sorem Realtor DRE #01374635
Data from iTech and SRAR MLS has not been verified, is not guaranteed, and is subject to change
A market index of above 1.20 is a seller's market, between 0.80 to 1.20 is a balanced market, and below 0.80 is a buyer's market.
The market index is 0.73, dropping 21 points from 0.94 last month, compared to 0.37 a year ago.
New Listings -81 new listings, compared to 66 last month and 74 in 2008.
Pending Listings - 58 listings opened escrow, compared to 69 last month and 36 last year.
Pending Ratio - 0.72, compared to last month's 1.05. Last year's was .49.
Listing Inventory - 172 homes on the market, compared to 153 last month. Last year - 260 listings.
Sold Listings - 68 listings sold during the month, compared to 75 last month and 59 in 2008.
Absorption Rate - 2.5 months, UP from 2.0 months last month. Last year it was 4.4.
Average Sales Price - $502,548UP from last month's $511,484 and down 9.18 % from last year's $553,291.
Price per square foot -$335.370, up from last month's $325.99, and down 4.75 % from last year.
Conclusions
The Market Index decline is probably the best example of the impact of the weak economy. Prices are showing signs of stabilizing and were it not for the current economic downturn, prices would probably be headed upward.
For buyers - Listing inventory is still only a two and a half month supply, which means that despite the economy prices appear to have headed back up since February. For those taking advantage of the $8,000 federal tax credit, time is running out.
For sellers - The lack of quality inventory is in your favor. To maximize value properly prepare your property for sale. We c an help. Ask for our Highest Price Analysis.
Keith Sorem Realtor DRE#01374365
Data from i-Tech and SRAR MLS has not been verified, is not guaranteed, and is subject tochange.
Pasadena, Altadena, South Pasadena, and San Marino
Market Index - .0.46, down 3 points
A market index of above 1.20 is a seller's market, between 0.80 to 1.20 is a balanced market, and below 0.80 is a buyer's market.
Index is at 0.46 down from last months .49 Last year the index was 0.28. The first decline in five months.
New Listings - 203 new listings, up from last month's 177. Last year there were 124.
Pending Listings - 123 listings opened escrow, compared to 112 last month, versus 124 last year.
Pending Ratio - 0.61, down from 0.63 last month, up from last year's 0.88 pending ratio.
Listing Inventory - 698 active listings, up from 616 last month. Last year we had 894.
Sold Listings -198 properties sold, up from 167 last month. Last year 137 homes sold.
Average Sales Price - $818,699, down from $719,515 last month, down 11.3% compared to last year.
Absorption Rate - 3.6 months, versus 3.8 last month, compared to 4.9 months last year.
Price Per Square Foot - $390.40, down from last month's $419.63, down 12.4% from a year ago.
Conclusions
As inventory continues to shrink, even in this chaotic economy, something is going to give. For those wondering where the bottom of the market is, look around. We may be here for a while.
For buyers - We are seeing multiple offers and appraisal issues, prices appear to be searching for the bottom.
For sellers - preparing your home for sale is the key to getting the best price. Although inventory levels are at historic lows, appraisals are causing problems. To find out how to maximize your sale price ask for the Highest Property Value Analysis.
Keith Sorem Realtor DRE #01374635
Data from Itech and SRAR MLS has not been verified, is not guaranteed, and is subject to change.
North Hollywood, Sun Valley, Valley Village, Valley Glen, and Van Nuys.
Market Index - 0.70
A market index of above 1.20 is a seller's market, between 0.80 to 1.20 is a balanced market, and below 0.80 is a buyer's market.
The market index is at 0.70, down 3 points from last month's 0.73, last year it was at 0.21.
New Listings - 168 new homes came on the market, compared to 171 listings last month, versus 289 last year.
Pending Listings - 190 opened escrow, versus 210 last month, compared to 136 last year.
Pending Ratio -1.13, up down 1.23last month but up from last year's 0.47.
Listing Inventory - 517 properties are on the market, down from 530 properties last month, compared to 1,220l ast year. Inventory continues to decline.
Absorption Rate - 3.0 months. Same as last month, way down from 9.6 months one year ago.
Sold Listings -170 homes sold, versus 177 last month, compared to 126 last year.
Days On Market - 50 days to wait for an accepted offer, down from last months 127 and equal to last years 50.
Average sale price - $319,908 down from last month's $326,333, down 23.5% from last year. Even as inventories reach record low levels, prices continue to decline but are beginning to stabilize.
Price per square foot - $225.76, down slightly
from last month's $226.27, down 19.8% from last year.
Conclusions
Although the market activity is still increasing, sales are increasing, so inventory continues to decline. An Absorption Rate of six months is considered a balanced market, and we are down to a three month supply of listings, which should result in prices going back up.
For buyers - this may be the bottom of the market.
For sellers - preparing your home for sale is the key to getting the best price. Ask for our Property Value Audit to learn how to maximize your profit when you sell.
Keith Sorem Realtor DRE #01374635
Data from Itech and SRAR MLS has not been verified, is not guaranteed, and is subject to change.
Atwater Village, Eagle Rock, Glassell Park, Highland Park, and Mount Washington
Market Index - 0.64 - up 8 points!
A market index of above 1.20 is a seller's market, between 0.80 to 1.20 is a balanced market, and below 0.80 is a buyer's market.
The Market Index went up to 0.64, versus 0.56 last month. Last year is was 0.21. This is the seventh month in a row of increases.
New Listings - 57 properties hit the market, up from 49 last month, versus 60 last year.
Pending Listings - 49 listings opened escrow, equal to 49 for each of the last two months, up from 21 in July of 2008.
Pending Ratio - 1.67, way up from 1.00last month, versus 0.35 last year.
Listing Inventory -174 listings on the market, down from 157 last month, last year was 262. Inventory continues to be low.
Units Sold -62 properties sold, up from last month's 39. Last year 25 homes sold.
Days On Market - 84 versus 137 last month and 72 last year.
Absorption rate - 2.8 months, last month was 4.0 and last year it was 7.3 months. A six-month supply is considered a balanced market.
Average Sale Price -$388,187 down from last month's $393,600 and down from last year by 16.2%.
Price Per Square Foot - $279.88, down from last month's $293.95, and down 18.2% from last year.
Conclusions
For buyers - this may be the bottom of the market.
Given the economy it is possible we will remain at the bottom for a while and that prices may continue to fall.
For sellers - preparing your home for sale is the key to getting the best price. Appraisals problems are beginning to have a negative impact on sales prices and may help push prices down further.
Keith Sorem Realtor DRE #01374635
Data from Itech and SRAR MLS has not been verified, is not guaranteed, and is subject to change.
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