Every month I read the real estate sales statistics in the Mail Tribune that are provided to them by the Rogue Valley Association of Realtors. All the numbers are averages, or medians, calculated for the last 90 days. Overall, they are reporting a seller’s market which means limited inventory for buyers and homes selling in 60 days at 96.9% of the asking price. This is true for a lot of home sellers, but not so for many others. The problem with using averages is that most homes are above or below the average. Price point and location are the two greatest factors in real estate and they determine how quickly your home may sell and for what percentage of the asking price. Looking at the chart below, you can see how it is a seller’s market until you get into $700,000 + priced homes then it starts to become a buyer’s market with over 6 months of inventory. While the average months’ supply of inventory may be 2.2 months, it’s more than 12 months for homes priced over $2,000,000. You can see how the price point of the property determines if it’s a buyers or sellers’ market.
Price point determines days on the market, % of asking price sellers receive, and how long it will take to sell. However, there is another factor, and that is LOCATION. If we redid the chart above and added price per location, it gets more complicated. A $700,000 home in Butte Falls or Shady Cove will take much longer to sell than a $700,000 home in Jacksonville or Ashland. So, if you’re selling and you really want to know how long it will take and what you’re likely to end up making, don’t look at averages. Instead, ask your Realtor to calculate the numbers based on your specific price point in your specific location and you’ll know exactly what the road ahead will look like.