How’s the Market?
Perhaps the first question that I am asked when someone learns I am a real estate agent is, “How’s the market?” Although most times the individual is just making conversation with an innocent question, the answer can be very complex. Are they asking whether housing prices are moving up, which is the perspective of a homeowner, or are they asking whether it is a good time to buy? Are they asking whether a lot of homes are selling, or are they asking whether it is taking a long time for homes to sell?
Well, let’s answer these questions from the perspective of my local market, which is Northeast Mesa’s 85207 zip code. More specifically, let’s look at single-family homes within this area. Buckle your seatbelt, because here we go…
Between January 2015 and December 2015, the median single-family home price sold went up 9.5% on average. Of course, this does not mean that any specific home when up by that amount, only that the homes that sold over that period of time did. So what’s the best way to find out what went on with homes like yours? (Here’s the sales pitch) Ask me. Because homes are unique—even in “cookie cutter” neighborhoods—it’s important to have your home independently evaluated. That’s why sites, like Zillow, have such difficulty with giving you an estimated value; these sites do not consider north-south orientation, views, pools, updating, neighboring conditions, such as parks, golf courses, and open spaces, to name a few.
Back to our original question: How’s the market? While home prices are going up, it is on average taking longer to sell those homes. The average time on market for homes in Northeast Mesa in 85207 went from 69.4 days in January 2015 to 95.8 days in December 2015. As a side note, January 2016’s average DOM was 95.8. Again, this is where the statistics can be a little misleading. An average simply means that the cumulative amount of time all the homes have been on the market divided by the number of homes sold has gone up over the year. However, this number is heavily influenced by outliers, those homes that sold either very quickly or those that took a very long time to sell. I find that the median value is more indicative of what is going on. As a quick refresher, the median value tells you that half the homes sold in less time than the value and half the homes sold in more time than this value. For the month of January 2015, the median time on market was 61.5 days and in December 2015 it was 58.5 days. So what does this tell us? First of all, half of all homes are selling in under two months, which is really good. Those homes that are not generally tend to be more expensive and have a smaller market (fewer people who are willing and able to purchase). So what should you expect for your home? Again, here’s that sales pitch—ask me! It is misleading to compare your home to all of Northeast Mesa. Your home’s market is only determined by comparing it to similar homes.
So how’s the market? For Northeast Mesa and 85207, prices are going up and half the homes are selling in under two months, while more expensive homes are taking longer to sell. How’s the market for your home? Give me a call and let’s find out.
Casteel Real Estate Professionals