Often times, I see reports referring to the average market time that it takes to sell a home in Tallahassee. Unfortunately, these reports are based on data that is not accurate.
They are a compilation of MLS sales data, where the market time is measured by taking the date the property was sold and subtracting the date the property was listed in the MLS. While this is an accurate way to measure the market time for that specific listing in the MLS, it fails to measure other critical components:
What these points really tell us is that we know "average market time" for a home in Tallahassee (or anywhere else for that matter) is longer than what is being reported. So, if we know the information is not correct, does it have any value to us? The answer is YES!
I like to look at the average market time statistics by price range in order to see which way it is trending. While I know the actual numbers are wrong, they are most likely "wrongly consistent" over time. So if the statistics tell me that average market time is dropping, I suspect this to be true. Conversely, if the statistics tell me that average market time is rising, then I also suspect this to be true.
Here is a graph measuring the average market time to sell a home in Tallahassee. While I know the days measured are not correct, I do believe that the trend is correct. Our graph tells us that the average market time for three of the four price ranges is generally the same as it was in 1999, but generally trending up since 2005.
Two interesting points from this graph are one, that homes priced near our median price point ($200K) seem to be selling a little faster this year than last year, and two, high end homes are still selling faster then they were in 1999.
They are a compilation of MLS sales data, where the market time is measured by taking the date the property was sold and subtracting the date the property was listed in the MLS. While this is an accurate way to measure the market time for that specific listing in the MLS, it fails to measure other critical components:
- Many properties are listed and fail to sell
- Many properties are listed for a period, pulled off of the market, and then re-listed (the only market time measured is the final listing period).
- Many properties are placed into the MLS after a Realtor sells an unlisted property (results in zero market time, though the home might have been previously listed or listed For Sale By Owner)
What these points really tell us is that we know "average market time" for a home in Tallahassee (or anywhere else for that matter) is longer than what is being reported. So, if we know the information is not correct, does it have any value to us? The answer is YES!
I like to look at the average market time statistics by price range in order to see which way it is trending. While I know the actual numbers are wrong, they are most likely "wrongly consistent" over time. So if the statistics tell me that average market time is dropping, I suspect this to be true. Conversely, if the statistics tell me that average market time is rising, then I also suspect this to be true.
Here is a graph measuring the average market time to sell a home in Tallahassee. While I know the days measured are not correct, I do believe that the trend is correct. Our graph tells us that the average market time for three of the four price ranges is generally the same as it was in 1999, but generally trending up since 2005.
Two interesting points from this graph are one, that homes priced near our median price point ($200K) seem to be selling a little faster this year than last year, and two, high end homes are still selling faster then they were in 1999.
Joe Manausa is the Broker and Co-Owner of Century 21 First Realty. He can be reached by clicking on the comments button below, via e-mail through his company website at www.manausa.com, or by calling (850) 386-2001.
Labels: Sell a home in Tallahassee, Tallahassee Real Estate, Tallahassee Real Estate Market, Tallahassee Real Estate Market Report
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