Currently there are 3 sales pending in the market overall, leaving 37 listings still for sale. The resulting pending ratio is 7.5% (3 divided by 40). The pending ratio indicates the supply & demand of the market. Specifically, a high ratio means that listings are in demand and quickly going to contract. Alternatively, a low ratio means there are not enough qualified buyers for the existing supply. Based on this index, current inventory is described as somewhat slow. The median list price (or asking price) for all properties in this market is $2,890,000.
A total of 37 contracts have closed in the last 6 months with a median sold price of $1,475,000. Breaking it down, we notice that the $600K – $1.2M price range contains the highest number of sold listings. Alternatively, a total of 16 listings have failed to sell in that same period of time. Listings may fail to sell for many reasons such as being priced too high, having been inadequately marketed, the property was in poor condition, or perhaps the owner had second thoughts about selling at this particular time.
Looking at the chart to the right, you might be wondering why average days on market (DOM) is important. This is a useful measurement because it can help us to determine whether we are in a buyer’s market (indicated by high DOM), or a seller’s market (indicated by low DOM). Active listings (properties for sale) have been on the market for a median time of 199 days. Analysis of sold properties for the last six months reveals a median sold price of $1,475,000 and 179 days on market.
Moving on, we can see the recent history of sales in the two charts below. The median sold price for the last 30 days was $1,450,000 with 148 days on market. Since the recent DOM is less than the median DOM for the last 6 months, it is a positive indicator for demand. It is always important to realize that real estate markets can fluctuate due to many factors, including shifting interest rates, the economy, or seasonal changes.
Analysis of the absorption rate indicates an inventory of 22.2 months based on the last 6 months of sales. This estimate is often used to determine how long it would take to sell off the current inventory of properties if all conditions remained the same. The median list-to-sales ratio for this area is 79.9%.