Currently there are 49 sales pending in the market overall, leaving 170 listings still for sale. The resulting pending ratio is 22.4% (49 divided by 219). 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 mildly active. The median list price (or asking price) for all properties in this market is $1,099,500.
A total of 170 contracts have closed in the last 6 months with a median sold price of $567,000. Breaking it down, we notice that the $300K – $600K price range contains the highest number of sold listings. Alternatively, a total of 56 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 131 days. Analysis of sold properties for the last six months reveals a median sold price of $567,000 and 103 days on market.
The recent history of sales can be seen in the two charts below. The median sold price for the last 30 days was $2,196,000 with a DOM of 349 days. Since the recent DOM is greater than the median DOM for the last 6 months, it is a negative 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 15.2 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 94.7%.