How’s the market?
91208 had some of the strongest statistics in the City of Glendale. Houses sold closer to the list price, in less time and there were fewer distressed sales than in most parts of the city.
Are we doing better or worse than 2009?
In 2009 homes sold for about 97% of their list price, while in 2010 they sold for 98%. This is due to two things.
- Successful home sellers are not wasting time with the “price it high” strategy, and
- Sophisticated buyers recognize good deals and buy them.
When you stop and think about it, this reflects a very healthy market. The last time the market hit bottom, it was because very few buyerscould buy. In this market, buyers have the tools to research both past and current sales. If a buyer decides a home is a great value, they can, and will, buy the home.
Aren’t there a ton of foreclosures and short sales?
While distressed sales are about the same percentage of sales, short sales are now 10% of the sales, vs. only 3% last year. This is mostly due to that fact that so many short sales took many months to complete. Bank foreclosures are down, making up 7% of sales so far, this year, compared to 13% in the same period last year. Again, I believe this indicates a stable economy in 91208, compared with surrounding areas where distressed sales make up 30% or more of the sales.
Let’s talk turkey. Is my home worth more or less?
Prices are stable, with an average sales price of $738,000 in 2009 and $741,000 in 2010.
Homes are taking a lot less time to sell in 2010. Last year the average days on market was 126, while the average this year is 47. This is outstanding, especially when you consider the larger number of short sale transactions that typically have a long marketing time.
The one note of real caution is the volume of sales. The number of homes sold this year is 69; by this time last year we had sold 98. A decline of 30% in volume will make any business analyst scratch their heads and start digging for answers. But, I have good news. The lower number of sales is nearly matched by the lower number of listings. The ratio of ready buyers to salable listings remains pretty constant.
So what is the take away?
If you need to move, now is a fantastic time to do so. Interest rates remain low, buyers are cautious but able to buy and there is little competition from other homes on the market.
You must be very smart about pricing. Over-pricing, even by just a smidgen, is to be a sad, lonely and unsold house.
If you are a buyer- know your facts! A house might go on the market at an exciting price and, even if there are multiple offers, the ultimate sales price might still be an excellent value. If you know your facts you might score an awesome house.