The most common challenge faced by sellers and their listing agents revolve around price.
Today, with all kinds of statistical information readily available for inclusion with a Comparable Market Analysis (CMA), there should be little doubt as what the pricing strategy should be in the current market. Price it ahead of the market!
Looking at my hometown of Alameda CA, I really like seeing the interactive statistics available on Trulia http://www.trulia.com/real_estate/Alameda-California/market-trends/
Looking closer at the sold properties, Alameda has its share of foreclosures. Although the type of sale wasn't categorized in 2007, in 2008 we saw a glimpse of what is to come in terms of foreclosures.
Q1 2009 is when Alameda recorded the largest % of bank-owned properties when REOs accounted for 31.2% of total sales.
Q4 2010, foreclosure sales dropped to 18.6% of total.
But it's a reality that there are quite a few distressed properties in our beautiful island where people will still hold our heads high and say that Alameda property values are holding their own.
MEDIAN FOR SALE VERSUS MEDIAN SOLD (List price versua actual sales)
It's no secret that sellers almost always think their property is worth more than what the market (and buyers) say they're worth. The first quarters of 2008, 2009 and 2010 show the median list price as higher than the median sold price.
Then surprise! The trend reversed when pricing became more aggressive (i.e. lower) in last 2 quaters in 2010. The median sold price exceeded median list price, suggesting that properties sold for over list price. Perhaps this is the pricing strategy that sellers and their agents should use especially since we anticipate more distressed properties coming to the market.
The median sold price is still trending downwards although we did see a slight uptick in 3rd quarter 2010, partially driven by the tax incentives for first time home buyers and the incredibly low interest rates.
Then it looked like we reverted to what may be considered "normal" movement in the 4th quarter 2010.
Median For Sale Price
Q4 2007 - $679,000
Q4 2010 - $575,000 or 15% less than same period of time 2007
Median Sold Price
Q4 2007 - $657,000
Q4 2010 - $590,000 or 10% less than same period of time in 2007, and 2.6% higher than median list price.
DAYS ON MARKET
Q1 2010 - 42 days
Q2 2010 - 33 days
Q3 2010 - 42 days
Q4 2010 - 48 days
We could say the state of economy is reflected in market movement of real estate property in addition to consumer goods. Real estate is taking longer to sell...and it may not be simply a matter of fewer buyers, but rather of more careful buyers who are making sure they are financially sound before they undertake what would be their biggest purchase: buying a home.