Tuesday Morning Market Memo – December 4 – 10
The charts below illustrate our typical winter season. Very few sellers put their homes on the market during the holiday season and this usually holds true through January and February. So the total inventory shrinks during this time.
Of those 696 listings only 6% are foreclosures. However foreclosures were 13% of the total sales in the last year. That is because foreclosures sell, many of the other listings do not sell.
13.5% of the 696 listings are new construction, but they were 20% of the total sales last year. There just are not very many new construction listings on the market this time of year. There will be a lot more by next June. I do know of some new construction listings so if you are looking for those drop me a line.
That leaves private sales as the remaining 80% of the market and they were only 67% of the total sales last year.
Why do foreclosures and new construction blow away the rest of the market? There is one reason and one reason only…
Builders and bankers understand that they are in competition with every other house on the market. Buyers will look at all the competition and make their choice. While there are many other variables such as location, and condition, the one variable that you can absolutely control is the price. If the house doesn’t sell then you need to lower the price. It’s as simple as that. That is where the rubber meets the road. There are many reasons why people don’t lower their price but the bottom line is that they really don’t need to sell or owe so much that they cannot sell.
It’s important to have good marketing, good photos, a home video and a good internet presence but after those are in place if your house isn’t selling, it’s the price.
Drop me a line if you would like to get a market price of your home.
|Average Price||Median Price||DOM|
Below is the chart from the week of Nov 19-26
|Number of Listings||Average Price||Median Price||DOM|
Last Monday Morning Market Memo: November 5-12.
This representation is based in whole or in part on data supplied by, and to, the subscribers of Alaska Multiple Listing Service, Inc. (AK MLS, Inc.). AK MLS, Inc. does not guarantee nor is it in any way responsible for its accuracy. Data maintained by AK MLS, Inc. is for its own use and may not reflect all real estate activity in the market.