Just before going home on Friday night, Redfin’s Jeff Yee just ran a query against all the active listings in our entire database, which includes listings from brokers, banks and owners selling their own home in Seattle, San Francisco, San Jose, Los Angeles, Orange County, San Diego, Chicago, Boston and Washington, D.C. areas (see links for local statistics on price reductions).
What he found: 38% of currently active listings have undergone a price reduction at some point since going on the market. But it was the average magnitude of the drop from the original list price that shocked everyone here: 10.7%.
The data-set hasn’t been scrubbed for outliers, and it doesn’t account for price drops where the seller pulled his listing from the market and quickly re-listed at a different price. But it still provides a quick portrait of a market where discounting has begun to spur more activity among buyers.
A Seattle broker mentioned this morning that he sees sellers racing to find a buyer before Halloween, which may explain why we’re now seeing such big drops. What’s happening in your market?
Thanks to Matt Goyer on Twitter for the tip.
Originally posted here:
Shocker: The Average Size of a Price Drop is 10.7%
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Many Home Buyers Need Higher Loan Limits - More Real Estate Science! Finding the Sweetest Deals
Redfin’s real estate scientists published a big, glorious new report today on when homes will sell for a big discount and when they won’t, based on thousands of home sales across the country.
We spent two months grinding through the data because every day, we see buyers with born-to-lose tattoos on their foreheads making lowball offers doomed to instant failure. And then sometimes they win.
Nuts! Figuring out fast when a deal will fly and when it won’t is the key to making our margins work.
We’ve tried to sort out when a seller will give ground, a posting that immediately set off a discussion at Newsweek and U.S. News & World Report and across the blogs. We’ve talked about it on TV.
Meanwhile, pricing discussions have been all the rage in our discussion forums, with visitors asking how negotiable new construction is, or even what to offer on an individual property.
Enter the real estate scientist, who shreds MLS data, website logs, academic research and tax records to provide reliable answers to practical questions: what really works when marketing a listing, what type of listings sell in less than seven days, whether high commissions lead to faster sales (they don’t).
Today’s report is about how to find the sweetest deals. Redfin’s Rob McGarty and M
ose Andre crunched the numbers for all 9,053 sales of single-family homes in Fairfax (Virginia ‘burbs), King (Seattle area) and Los Angeles counties, between April 15 and June 15 this year, to look at homes that sold for a lot less than the asking price.What surprised us right off the bat was how small the average discount was: after all the bad news about the housing market, it was still less than 2.5%. We were also surprised to see that a small fraction of listings got a huge discount, of more than 10% off list price.
This means that 90% of the time, lowballers are wasting their time. But that 10% of the time, they’re saving $50,000. The trick is finding the listings ripe for a discount.
So for each market we split the sales into two buckets: those that got the biggest discount (top ten percentile, an average of 11.4% off the final asking price), and all the rest (the 90th percentile and below, which got an average discount of 1.5%).
Then we compared the two groups to see what the sales involving a big discount had in common:
1. 83% more likely to have been on the market for 90+ days.
2. 73% more likely to be marketed as fixer-uppers.
3. 20% less likely to feature a noteworthy remodel.
4. 28% more likely to have already been price-reduced (though there were some confounding factors).
5. 52% more likely to have been seller-owned for 20 years or more.
6. 9% more likely to have been seller-owned for less than five years, a slight but surprising correlation.
7. Only 9% more likely to be a short sale or bank-owned. Most consumers expect this correlation to be much stronger.The portrait that emerged is of a bimodal market (much like the VC market right now) — a few homes in the most sought-after neighborhoods sell for well above asking price, most sell near the asking price and anything distressed or run-down (more homes are run-down now than before so the drop in prices is in part a reflection of the drop in the quality of the homes being sold) just keeps dropping and dropping.
The bottom-line is that the condition of the home and its length of time on the market — surprise, surprise — are the main drivers for discounting — but how long the seller has owned the home is a big factor too. And foreclosures aren’t as negotiable as people think.
The report has already gotten picked up by the LA Times and now the Seattle Times too (FRONT PAGE!!!).
Get the full paper (PDF), which breaks out all the data by county, and goes into the methodology too.
See the original post:
More Real Estate Science! Finding the Sweetest Deals - Seattle real estate news
The broader bursting of the U.S. housing market has had its share of effects on Seattle real estate, bringing down average sale prices and home values but making many homes affordable for a new class of buyers. …
Continue reading here:
Seattle real estate news - Greenville SC Residential Real Estate Market Conditions Statistics, Properties, Listings and Homes for Sale – June 2009
Greenville SC Residential Real Estate Market Conditions Statistics, Properties, Listings and Homes for Sale – June 2009. Includes such cities as Simpsonville, Taylors, Mauldin, Fountain Inn, Travelers Rest, and more.
Greater Greenville real estate market saw an increase in sales again for the months of June. Inventory level has also gone down slightly compared to the month on May.
For the month of June, there were 673 (583 for May) residential listings sold, at an average sold price of $170,785. Total sold volume was $114,938,281, and the median sold price was $139,000. Average days on market for the month of June was 107 days.
Year to date, between January 1st – June 30th 2009, there were 3115 residential listings sold, at a total volume of $518,009,071. The average sold price was $166,295, and median sold price was $139,400. Average days on market was 102 days.
As of July 10th, 2009, there were 7062 (7175 for same time in June) residential listings Active in the Greater Greenville MLS. Average list price was $270,756, Total volume was $1,912,078,161, and the median list price was $190,000. The average days on market for these active listings was 149 days.
Please keep in mind that this report may not include all sales like For Sale By Owners, and new construction homes brokered by MLS member firms. Stats were gathered from Greater Greenville Association of Realtors.
Feel free to contact me at any time for an update on your neighborhood, or for your Greenville, Simpsonville, and Upstate real estate needs.
As your Simpsonville SC and Greater Greenville residential Realtor, I am committed to staying up to date with local information, education, and technology. My intention is to be an invaluable real estate resource. So, whether you are buying or selling real estate in Simpsonville SC, Greenville SC, Greer SC, Easley SC, Mauldin SC, Fountain Inn SC, Pickens, Powdersville, Taylors, or other Upstate SC areas, I have the tools, knowledge, experience, and resources necessary to make your experience an enjoyable and successful one. I can also help you avoid foreclosure, find Foreclosures and Short sale Properties, listings and Homes for Sale. Call me at 864-525-0201 so we can discuss how I can help make your next real estate transaction a success.
Victor Amadi is a Greenville SC Residential Real Estate Expert, who specializes in helping Home Buyers find the best possible home and get the best possible deal. He also specializes in utilizing some of the best marketing tools to help home sellers get their home sold fast and for top dollar.
Free WP Plugins - A-Rod Drops Price a Third Time
Maybe if a buyer waits long enough, A-Rod’s Coral Gables home will just be given away — just pay the $161,000/year in taxes.For a third time since listing it for sale in October of 2008, Yankee superstar Alex Rodriguez has dropped the price on his Coral Gables home, according to the South Florida Business Journal. A-Rod’s house is located at 181 E Sunrise, Ave, Coral Gables, FL.
This latest drop went from $11 million to $9,999,999.
Here’s the timeline:
- Purchased home in December 2004 for $12 million
- Listed it for sale in October 2008 for $14,876,000
- Dropped price in February 2009 to $12.3 million
- Dropped price in June 2009 to $11,000,000
- Dropped price in July 2009 to $9,999,999
Since A-Rod’s divorce was finalized in February, he has been romantically linked to Madonna and now, Kate Hudson.
Excerpt from:
A-Rod Drops Price a Third Time
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