During the 6 months ending November 16, 2008, there were some similarities in trends across these three neighboring towns, and also some differences.
SALES
The number of homes sold during the past three months in each of these towns on Lake Michigan declined from the prior three months.
- Lake Forest sales declined by about 55% from 63 homes to 28 homes.
- In Glencoe the decline was about 45%, with 23 homes sold in the most recent 3 months from 42 in the prior 3 months.
- The decline in Highland Park was only 25%, with 77 homes sold in the prior three months, and 58 in the most recent three months.
DAYS ON MARKET
In all three towns, the supply of single family homes currently for sale far exceeds the number of homes being purchased. This is no surprise - you've heard that across the country we have a buyers' market, which by definition is a situation where supply exceeds demand. What I find very interesting is the number of days (market time) that homes are available for sale.
The average market time for the homes that have sold is significantly lower than the average market time for the homes that have not sold in all three towns. This dichotomy is most pronounced in Lake Forest where the 28 homes that sold in the past three months were on the market for an average of 175 days, while the remaining 348 homes that are still for sale have an average market time of 295 days!
In Glencoe the 23 homes sold in the past three months with an average market time of 199 days, and the remaining homes for sale have been on the market for 250 days. And in Highland Park 58 homes sold during the past 3 months with an average market time of 237 days, compared to the 361 still for sale with an average market time of 278 days.
So, why are certain homes selling faster than others in this buyers' market? The buyers out there are very savvy and they are looking for a good value. The homes that are the best value for the money are selling first. With all of the information about homes for sale now available through the Internet, buyers can easily do some comparative shopping before they even step foot inside a home - and that is exactly what they are doing. Those sellers that put their homes on the market with a competitive price from day one, are selling before the other homes. Those home owners that want to try a higher price point to start out, and then lower the price later are suffering with extended market times.
Here are my personal statistics...
The homes that I market for my clients have an average market time of 104 days and they sell for 96% of the list price.
Thanks for reading!
Comments