When it comes to figuring out what price your home should sell for, the key, is understanding what is going on in your local market. I don’t just mean just keeping up with media reports on average sale prices for homes in Canada, Alberta, or even Calgary. When I say local… I mean “Hyper-local.”
A good place to start, is with your neighbourhood…
Here’s a look at what’s been happening in the community of Sundance:
From September 1, 2012 – December 20, 2012 32 homes sold in Lake Sundance. We’re used to media reports on average sale prices. The average sale price for the fall of 2012 in Sundance during this time period, was $466,390. But does that tell the whole story?
First it’s important to consider that in a lake community such as this, the homes that back right onto the lake are considered luxury homes, and of course they sell at luxury prices. When just one of these sells, it brings up the average price in the neighbourhood accordingly.
On the other end of the spectrum, Sundance also offers first time home owners some great opportunities in starter homes. These homes have sold in the $280,000 - $350,000 price range. You can see in the chart below, the vast difference between the highest and lowest selling prices for this community.
Actually, during the fall of 2012, of the 32 homes that sold, 23 sold for less than the average price of $466,390. That’s over 70%. The median price for the same time period was $428,750. That is to say… half of the homes sold for less than the median price, and half of the homes sold for more than $428,750. Often, this can be a more telling general indicator of trends in a real estate market.
The chart below shows a breakdown of the number of homes that sold in various price brackets. You can see that the vast majority sold between $400,000 and $499,000, while only 1 sold between $600,000 and $799,000, and just one other sold above the $800,000 mark.
But then what is a trend without Time? Let’s take a look at the real estate market in Sundance for the same time period in 2011.
Once again, in the fall of 2011, one property sold over the million dollar mark. This shows quite a dramatic change in the chart, however, it’s important to note here that the size, features, and updates in luxury homes in this market can differ quite drastically. Also, there are fewer of them on the market at any given time, so one completed sale can change the appearance of a trend in sale prices significantly.
You can see though, that from the fall of 2011, the average sale price is up 2.4% from $455,453 to $466,390. The median sale price rose 5% from $406,425 to $426,750. The lowest sale price in the starter home market also increased significantly from $245,000 to $280,000.
The community of Sundance, with recent sale prices ranging from $280,000 to well over one million dollars is a prime example of how important it is to focus on the local market when pricing your home. When I conduct home evaluations, I tend to focus even more locally, breaking the statistics down to areas where the homes are most similar to the one I’m evaluating.
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