Homes that are priced properly are generally selling relatively quickly.
Homes that are overpriced for their location are sitting on average 188 days in 2012. These homes need to be priced suitably based on current market activity for their neighborhood. The potential to sit even longer exists if the home is over-priced or are not desirable.
Average days on market rose from 171 in 2010 to 183 in 2011. As an example of how things have changed, in 2008 the average days on market was 126. In 2012 the level is now at 188 days.
Average Price and Inventory Levels
a) 2012 avg home sales price in the region is $221,000 compared to $217,000 in 2011. In 2008 the average home price was $259,000
2012 Avg Inventory on Market - 8,130
2011 Avg Inventory on Market - 8,566
2010 Avg Inventory on Market - 9,382
2009 Avg Inventory on Market - 6,131
2008 Avg Inventory on Market - 2,280
You can clearly see that inventory levels are getting better from a sellers perspective but they are no-where near the highly constricted 2008 levels.
Inventory in many of the highly desired price-points and areas such as West and North Asheville are extremely tight. These areas are proving to be very difficult from a buyers perspective. I am seeing multiple bidding situations throughout these areas.
b) If you price your home with the expectation built-in of about 5% less than asking, you are putting your home in a much more competitive situation compared with other homes within the location and price-point.
c) For example recently in North Asheville I listed a home for $419,000. The second day on the market we received 3 offers.
The price point was attractive based on comparisons, which were over-priced and thus are sitting on the market for way to long to justify a strong bidding price. We had 6 showings in 2 days.
Some areas and some price points are simply more in demand than others. My customers and I took into account the 92% average when pricing, therefore we went under contract very quickly. |