Home Buying in Springboro>Question Details

Bpg, Home Buyer in Springboro, OH

There seems to be a large gap in Springboro between the average listing price and the median selling price. How should this be interpreted?

Asked by Bpg, Springboro, OH Tue Mar 23, 2010

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8
Kristin Hoch’s answer
I believe the market has started to find a balance in recent months. Statistically the list to sell ratio has a variance of less than 5%. According to the National Association of Realtors in 2011 60% of homes listed at fair market value will sell in the first 60 days!
0 votes Thank Flag Link Thu Sep 27, 2012
Too many homes on the market too close to each other. Buyers have lots of options to chose from.
0 votes Thank Flag Link Tue Jun 12, 2012
The average selling to list price is better interpreted by subdivision. If I were a buyer I would look at days on market and research data in the area (street, subdivision) in which Ihad interest. Prices are all over the place in this market..therefore averages make me very nervous. Get specific for the street and subdivision you are searching.
0 votes Thank Flag Link Mon Jun 21, 2010
One of 2 things is going on

1 high prices houses are not selling and those skew the median price.
2 prices are to high and sales reflect more reasonable sales prices.

#1 is most likely the truth.
0 votes Thank Flag Link Tue Mar 23, 2010
Bpg you have to understand the difference between average and median. If you had 4 houses sell, 3 sold at 50,000 and 1 sold at 650,000 the average would be 200,000 the median would be 50,000. Yes there are more lower price homes but that is always the way it is. Investors are buying homes, fixing them up and reselling them. This is a rehabbers market by the way. If they buy at 50,000 and put 30,000 in a property to resell it if you just look at the statistics they double their money. In reality they are making about 5,000 after all the costs that they incur are included.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Tue Mar 23, 2010
First one must realize the difference in statistical measures of average and median. Average takes all homes listed and treats them as what the price would be is they all sold at the same price. Median is the actual middle price of all the homes and that statistic would better represent the price of Springboro homes. Since there are some very expensive homes in Springboro, such as in the 6-9 hundred thousand dollars, the average price would increase. but more homes sell in the median range.
I hope that helps to answer your question. We have seen a decrease in value of about 11% since the recession hit. Not as bad as some places, though, and Springboro is one of the top 100 places to live in the US.
Web Reference: http://www.borohomes.com
0 votes Thank Flag Link Tue Mar 23, 2010
One other factor that we didn't mention in the first answer, but bank owned properties and short sales are also contributing significantly to gaps in asking price vs. selling price. Typically both cases gap signficantly between the two and contribute to pushing the median selling price down. Springboro doesn't have a disproportionate amount of lower priced housing overall, but there's enough foreclosure activity to be a general drag on the market.
Regards,
Bill & Liz Spear
RE/MAX Elite
Web Reference: http://www.LizTour.com
0 votes Thank Flag Link Tue Mar 23, 2010
In a slower moving market for sellers, sellers will sometimes settle for less than they'd prefer just to wrap up and move on. Listing price reflects a seller's wants, with typically some built in room to negotiate down to meet the buyer's offer. We've seen this gap between asking and buyer final offer grow a bit as homes have been on the market longer. The sellers who don't want to adjust down, pass on the offers, and those that are williing to adjust negotiate a deal. The net of this is home sales gapping. It's not particular to Springboro, but a general condition for the market overall.
If we can help further, please let us know!
Regards,
Bill & Liz Spear
RE/MAX Elite
Serving Warren County
0 votes Thank Flag Link Tue Mar 23, 2010
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