The market is nuts and everything is selling $100K over the list price!! We hear that quite a bit, but how true is it? Today I have some new visuals to help answer this question. If you’re not local, would your market look similar?
Two brand new visuals. What do you see?
Below the list price: This visual adds sales below the list price and at the list price. Remember, over 22% of sales sold either at or below their original list price last month. That’s actually an astounding number because it really should be about twice as high as that in a normal market. But here’s the big point. Not everything literally sells above the asking price – even in this crazy market.
Breaking down the numbers: I know it would be cool to see these types of stats throughout various price ranges. If someone hires me full-time to crunch numbers I promise I’ll share that stuff. For now here is a regional overview.
A property really sold $340K above the list price? Yes, a property in Granite Bay listed at $1,995,000 and closed at $2,335,000, which is a difference of $340,000. Most of the outliers paying hundreds of thousands over the asking price are in the luxury market. But remember, literally 0.77% of all sales went $200K above asking.
The big takeaway: It’s shocking to see nearly one out of every three sales go fifty thousand or more above the original asking price. That’s a sensational stat and clearly a symptom of a lopsided market. But let’s get technical. About two-thirds of all sales are not selling $50K above the list price and selling $100K above is such a small sliver of the market. I’m not trying to minimize how competitive it is. I’m just saying only 6.3% of the market was able to sell $100K above the list price, which means 93.7% of the market didn’t do that.
Closing advice: Let the stats form your narrative and always be careful about letting sensational sales form your perception of the market. And sellers, don’t aim for a unicorn situation that only happens in a handful of transactions.
Thanks for being here.
SHARING POLICY: You can share my stats and visuals above, but please attribute the source. Here are 6 ways to share my content (not copy verbatim).
Questions: What stands out to you or surprises you above the stats above? What are you seeing out there in the trenches?