Regardless of whether the real estate market is hot or slow, there are always some homes that sell very fast and others that take forever to sell.
However, one indication that the real estate market is improving is by monitoring how fast the median home sells.
In a seller's market, even homes that are slightly overpriced will sell quickly. In contrast, a buyer's market means that a slightly overpriced home won't sell until the price is reduced to at or below the actual value.
In today's market, the vast majority of homeowners who put their house up for sale understand that prices have come down dramatically since their peak around 2006. These homeowners are pricing their homes appropriately for today's values. In addition, there is a pent up supply of buyers who are finally ready to buy a home. Interest rates are at historical low levels, helping buyers who feel secure with their jobs take the plunge.
The result is that TODAY'S REAL ESTATE MARKET is a balanced market. While prices have not returned to 2006 levels, and they won't for many years, there is not an oversupply or undersupply of housing for sale compared to the number of people who want to buy.
Even in January, Creve Coeur area properties are getting showing traffic. My condo listing in Field Pointe Condos at 12930 Twin Meadows Ct has had 7 showings since I listed it 21 days ago!
How Fast Do Homes Sell?
The result of a balanced market is that the majority of homes are selling relatively fast. Homes that are priced right, staged to show off their best features and get top-notch internet marketing exposure should sell within 90 days.
CREVE COEUR HOME SALES - 2012:
There were 173 homes (single family & condos) that sold in Creve Coeur in 2012.
Sold in 0-30 Days - 18% (Sold for 96.9% of list price)
Sold in 31-60 Days - 14% (Sold for 94.4% of list price)
Sold in 61-90 Days - 14% (Sold for 87.7% of list price)
Sold in 91-120 Days - 12% (Sold for 91.1% of list price)
Sold in 121+ Days - 42% (Sold for 82.9% of list price)
In Creve Coeur, about half of the successful sales get an accepted contract in less than 90 days. Almost an equal number of homes take over 121 days to get a contract. If you are planning to sell and want to make sure you are in the group that sells quickly...which also means you don't have to come down as much in contract negotiations...then you need to hire an agent who will make sure you are priced right on day one.
Arch City Homes offers buyer and seller representation. If you are planning to buy or sell a home, contact Karen Goodman (email@example.com or 314-677-6538) to discuss how our agent specialists can help you accomplish your goals.