There is no doubt about it….the local market has been picking up steam the last several months, and there is no sign of it slowing down as we enter into the summer months. We are seeing some properties that have been on the market for months or even years waiting patiently for their next owner and other properties receiving multiple offers within a few days of hitting the multiple listing service. Why the vast difference? Why are some properties selling in a day and others taking way beyond the average days on market? The simple answer is it all depends on the product, the price and current competition.
All three of these elements are very important to analyze when listing a home and even more important to continue to consider as you accumulate days on market. Statistically, the longer a property sits on the market the less it will sell for in the end. For example, just last month there were 21 residential sales in Ashland under $500k. The average days on the market for these listings were 63. The price point of $501k-750k only had four recorded MLS sales but the average days on market for that price bracket was six. That’s right… of the four properties that sold in this price point, they were pending within an average of six days. The higher end market from $750k-$999k had five recorded sales with an average of 55 days on the market and there was only one recorded sale over $1 million.
As you can begin to see, each price band has different statistic that surrounds it and if you dive into the current listings that haven’t yet produced a buyer you will find that supply and demand vary greatly depending on the price point. In the month of April the months of supply for the $350-$500k price band was 2 months. This means if we didn’t list another property in Ashland, we would run out of listings to sell within two months. The months of supply for $500-750k was 3.6 and for the price range of $750k-$1 million was over seven months supply. Historically, it is considered a sellers market is we have under a six months of supply.
Obviously, agents who are concentrating on the local Ashland market have an incredible advantage when it comes to establishing value for a property. With our values so impacted by supply and demand, focusing exclusively on market stats is a disservice to you and quite likely will leave money on the table. Sure, everyone can access public information, check out zillow for your “zestimate” of value but nothing replaces first hand knowledge. Without being immersed in this industry, an outsider doesn’t have the inside scoop regarding which properties and price points are in high demand as compared to others. What your home is worth goes far beyond a radius search of price per square feet analysis.
More specifically, it may likely not be in your best interest to list your home at $760k if that price range is saturated and the ‘selling’ market is much more active at $750k. Sure, listing it $10k lower is still $10k out of your pocket but if you list too high and never sell…that money wasn’t yours to begin with. It’s as important as ever to be certain you are leaning on the people who know this information and can guide you appropriately. The selection of Brokers runs far and wide in our valley so aligning yourself with someone who is a local expert is worth its weight in gold. Your Uncle Bill who is an agent from Utah probably isn’t the best fit to guide you in our local market but let’s be honest… you already knew that.