As we navigate the luxury real estate market together, we always enjoy sharing the numbers with you. It’s fun to see what sells and at what price per square foot. In addition to this information, we will continue to refine our data and visuals to help you better understand the market and where it’s headed. For example, we will now be comparing absorption rates month over month. This will tell you if a particular price segment is becoming more of a seller’s market, a buyer’s market, or is remaining flat.
In January, 43 of the closed sales required at least one price reduction (up to as many as nine price reductions) before proper pricing started to generate offers. Once the homes were priced correctly, which in some cases meant the original list price, 78% sold within 60 days and 93% sold within 90 days. These homes had an average of 121 Days on Market, but this just means it took a while for each home to be positioned correctly within the market. As for the negotiation process, 53% sold within 5% of their last asking price, and seven even sold for full price!
There were 368 homes for sale at the end of December; 55 of these listings expired in January, meaning that 15% of the inventory just vanished. Some of these homes may get relisted, some might go up as rentals, and others will simply remain off the market. In any case, it’s worth remembering that listings do expire. When looking at the list of closed sales, you might think that everything eventually sells, but that’s not the case.
As we’ve always said, there are three primary drivers that cause a home to sell: Marketing, Condition, and Price. The market trends we’ve provided today explore the nuance of price. If you’re considering selling, we’d love to chat with you about marketing — whether it’s in person or on the phone — and we always offer a free staging consultation to help you get the best price possible.