Which way is the Real Estate market shifting?
“Is the market improving?” and “Which way is the marketing going?” are the top questions I get as a Real Estate expert. I analyze the Multiple Listing Service (MLS) statistical detail every single month for Fort Myers Beach and I would like to share my findings with you and let you answer the questions.
In October 2009 there were 17 sold properties in Fort Myers Beach. Those sold were on the market for an average of 247 days and the average sold at 88.59 percent of the current list price. However; the average sold for only 76.06 percent of the ORIGINAL LIST PRICE.
The average property sold in October was originally listed for $473,552, but sold for the average price of $372,698. The average “Current List Price” of when the property actually sold was at $415,988. This means that there were approximately 13 percent taken in price reductions. These sold for 78.89 percent of what the property was originally listed for.
In November there were 16 sold properties in Fort Myers Beach. Those sold were on the market for an average of only 157 days which is a significant improvement over October. The average sold at 92.2 percent of the current list price. Again, the average sold for only 85.21 percent of the ORIGINAL LIST PRICE. The average sold price was $291,718 and the average original list price was $342,338. The average current list price for these properties was $316,393.
The one thing that holds true is the shorter days on market the closer to the original asking price the sale is. In November properties sold for 85 percenty of the ORIGINAL asking price with 157 average days on market, and in October the properties sold for an average of 78.89 percent of the ORIGINAL asking price with the average days on market at 247.
The biggest mistake that sellers make in today’s market is pricing. If you price the property in accordance with the current market, the property will sell faster and you will not continuously “chase the market”. The proof of this is the actual sale price to the current listing price, which is the price the property was at when the contract was written. The gap here is much less and proves that the original list price was over inflated. When properties are selling at 92 percent of the current list price but only 85 percent of the original list price, it shows that the seller was chasing the market.
There were two properties that sold in less than 60 days and each for 95 percent of the original list price. Both are great examples of market accurate pricing. On the contrary, there are two properties that were on the market for over 300 days and one property sold for 69 percent, and the other for 62 percent of the original price.
Statistics don’t lie. The key to selling a property is pricing it congruent to the current market conditions.
(ITALICS) Jason M. Jakus is a licensed realtor for Leisure American Realty, a full service Real Estate and Property Management company serving the beaches and surrounding areas of Lee County. Their office is located at 2450 Estero Blvd., Fort Myers Beach FL 33931. For more information on this or any other real estate or property management subject contact Jason at 239-463-3178 or email RealtyInfo@LeisureAmerican.com.