For Sale Vs. Sold
We are observing a definite, consistent turnaround. Inventory has been on a steady decrease, and it looks promising that this trend will continue. Sales are high, also with the expectation that this trend will continue, though very likely at a slightly lower level.
In October, we see inventory that has only 9 more units than last year in December. With a high number of pending sales in October, I can safely say that inventory in December of this year will be lower than the same month last year. This is promising news for sellers, and could be a very early indication that the bottom is near.
Days on Market - Sold Vs List Price (as a Percentage)
The average days on market indicates how long listings are remaining on the market before they are sold. One important point to note is that these numbers do not take into account those listings that do not end up selling, and instead indicate how long fairly priced homes will take to sell.
You will also see on this graph how much a home sold for, versus its list price. An obvious trend indicates that homes are now selling for less than their list price, which is a different story than what we saw a few years ago.
Homes are also remaining on the market longer than they were a year ago. This chart here demonstrates exactly why it is so important for sellers to price their home fairly. Any homes that are overpriced will not get any attention, and will cost the seller precious time in a rapidly changing market.
Average Price - Sale Vs. Sold
We find some important information on this graph about list prices and sales prices.
The green line shows the direction that listing prices have been headed. It is interesting to note that listing prices have been on an upward trend since January of this year.
Inversely, the red line shows that sales prices began a sharp decline in June of this year.
It is interesting to see two very opposite trends for 2 statistics that most people would normally expect to follow the same direction. But this is a prime example of what is going on in the market. Coupled with the first graph which shows high sales, we can extrapolate that it is the lower priced homes that are selling swiftly. So for all you sellers, be careful how you price your home if you need it to sell fast. Buyers are out there waiting to pay a fair price, and they know that they are the drivers.
One side note to these observations: Buyers should not get the idea that they can get discounts of 20%, 30%, or more on the purchase of a home. The only homes that are being sold at a discount are bank owned homes, short sales, or homes that are in significant disrepair. However, you do still have negotiating leverage, and offers below the asking price are the norm these days.
Months of Inventory
Anytime inventory is more than 6 months, it is considered to be a buyer's market. Though sales have been swift and inventory has dropped, we still have a steady flow of inventory coming on the market that are bank owned or short sales. Once this flow lessens, we will begin to see a further steady drop in the months of inventory.
Tiffany Wilson has lived in the South Bay of Los Angeles County for almost 10 years. She and her family enjoy the safety and rich family features that the beach communities of the South Bay have to offer, including a close and neighborly community. Also, having experienced an out-of-country move to California over 10 years ago, she is perfectly positioned to assist out-of-state and foreign buyers in their search for real estate in the South Bay and the additional surrounding communities of Los Angeles and Orange County. She can be reached directly at tiffany.wilson@shorewood.com or 310-503-0557.
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