Recently we were looking at sales data from all our Central PA real estate markets combined, to evaluate the way in homes sell in the region. Also, we were updating some essential sales stats for our agents to use.
What we found was that, while the situation has improved overall in a fairly dramatic fashion, properties that are overpriced to begin with really suffer a long and painful journey to closing.
Specifically – the median days on market for residential listings sold for the last 12 months throughout all the areas of Central PA was 56 – down from 81.5 a year ago. Big improvement.
When we compared those listings that sold in 56 days and faster to those that took longer than the median, huge differences emerged. Those that sold in the top half (meaning faster than the median) sold in an average of 20 days and experienced a 2.7 percent average price concession. Not bad.
Those in the bottom half, however, experienced 171 days on market (almost six months) and a 9.5 percent price falloff – much, much worse.
To those of us on the street, this is not really earth-shattering news; we all see properties selling in a week or two in our communities. All the time, in fact. We also see other listings sit, and sit, and sit some more. The issue?
You know what I’m going to say.
For those of you about to list and are serious about having to move, work to get the price right on day one. Maybe even -5 percent, just to spur buyers to action. Just don’t get stuck in the bottom half this fall. It’s all about being in earnest when you are ready to go.