This week I wanted to show what what types of data that I look at each time I am asked to perform a residential property appraisal. I will typically include a graphic representation of these numbers in my reports as they tend to illustrate the current market quicker to the reader than just words alone.
My analysis starts with a broad neighborhood scope (Oviedo), in which the property is located. I follow with a second micro neighborhood or subdivision within the larger Oviedo area, such as Live Oak Reserve or The Sanctuary, in order to recognize small pockets of appreciation or decline trends within the immediate neighborhood. Each set of numbers are entwined with the other to tell it's own mini story and helps distinguish where the property piece fits into this larger market jigsaw puzzle.
If you look below you can see that the third quarter '07 reflects a 17% slowdown in the Oviedo Real Estate Market while the '07 fourth quarter (current quarter) is also lagging in sales volume. Although the quarterly median sales price has fluctuated somewhat, it has held up well over the last five quarters while decrease in high value property sales.
The Days on Market (DOM) for Oviedo has increased 62% from the third quarter of 2006 to 2007 which shows the market has slowed dramatically. Another important indicator is the Expired and Withdrawn Listings as they reflect the amount of listings that did not sell through the listing period. The fourth quarter has been notoriously viewed as a slower time but the first month (October) appears to show a projected 32% sales volume decline beyond the typical lull.
Because these numbers do not include any FSBO sales or all of the new home/builder sales as they are not always marketed through the local MLS, additional research which would be combined with these numbers.
Oviedo (Single Family Detached Properties in the 32765 & 32766 Zip Codes - MLS data only)
Price Range - $155,000 - $1,900,000
Marketing Time - 3 to 6 months
Sales within the prior 12 months - 728
Active Listings as of 10/31/07 - 629
Pending Listings - 55
Expired Listings - 405
Withdrawn Listings - 673
Absorption Rate per month - 60.67
Inventory Supply - 11.27 months
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