3rd Quarter 2008 & Year So Far in Review – Comfort ISD Residential Sales
October 14th, 2008 categories: About the Local Market, Assessing the Local Market
As stated in my previous post, FOUR SALES IN COMFORT ISD IN SEPTEMBER, 2008 – Volume Up Compared to September, 2007, Comfort had a month’s reprieve in terms of declining residential sales. Here is a chart that shows the year to date results:
Sales for the 3rd quarter were down overall by 3 totaling $637,140. Year to date, 2008 Residential Sales were 75% of 2007.
Some interesting points about these Year-to-Date figures:
Buyers are getting overall better deals as the percentage of Final Sales Price to Original List Price dropped 2.3% to its current value of 91.66%. What this means is that a house originally listed at $100,000 is ultimately selling, on average, at $91,666. Please keep in mind that this statistic takes into consideration price changes (e.g., the list price is dropped from $100,000 to $95,000) AND contract negotiations (e.g., the final price settled on by buyer and seller after negotiations and additional repairs is $91,666).
The Comfort market has been slow to adjust but it IS adjusting. As Original List Prices are adjusted to be more in line with the “real market,” this number will likely go back to our area’s historical 95% figure (e.g., a $100,000 home will sell for $95,000).
I can not overemphasize the importance of coming up with a realistic Original List Price as it determines the appeal of the listing and the speed that the listing will ultimately sell for (See my article HILL COUNTRY HOME SELLERS: WHY YOU ARE GIVING AWAY YOUR PROFITS? for more information). In this market, there is just not room for “testing” the market. The Original List Price is a function of the real estate agent’s counsel (whether he/she gives the Seller a reasonable figure or inflates it in order to get the listing) together with the Seller’s willingness to list at a reasonable price.
We hope that you have found this information of value. If so, the best compliment you could give us is to call us with your real estate needs and, if not in present need, the referral of your friends and family. We can be reached at our office at 830-995-2511.
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