Homes For Sale In Ion: Just What Is The Market Doing In Ion?
Today I am looking again at the numbers from the Charleston MLS for homes for sale in Ion. First, the sold homes in November:
As you can see, the number of sold homes is declining. In October there were 4 sold homes, and that dropped to just one home sold in November. Next, let’s look at the Average Sales Price:
The Average Sale Price dropped in November as well. In October it was $816,750 and in November it was $749,000. The peak for 2014 so far was $1,156,838. Next up is Pending Sales, which can be an indicator of future sales:
That number also dropped, from 4 in October to 2 in November. That number peaked in 2014 in April, with 12 Ion homes going under contract.
Next up is the Average Price Per Square Foot, which is a good way to compare homes that vary.
That number is also on the decline. The peak was September at $341/sq ft. In October it was $313/sq ft and it continued to drop in November at $279/sq ft. So, are the numbers indicating a declining market in Ion?
Let’s look at some other numbers before jumping to conclusions. First, the Average Days On The Market:
That number is actually down, from 58 in October to 41 in November. That number peaked in March at 167 DOM, and the lowest DOM number was in September at 15. Another important number is the Months Supply of Inventory:
That number also dropped in November, down to 4.2 months from October’s 4.8. The lowest Supply was in May at 3.4 months, and the longest supply was in both July and September at 5.3 months. Here is a quick reminder what Months Supply indicates:
First, let’s look at how many Ion homes are currently listed for sale. Right now, there are 24 homes for sale. They average in price at $303/sq ft and 158 DOM. Comparing those numbers to the current market stats, those homes are overpriced and have been on the market longer than the average.
Of those 24 homes, 22 have been on the market longer than 41 days. In fact, 16 homes have been listed for over 100 days, and 6 of those have been listed for over 200 days. One home has been on the market for 452 days!
This is a classic case of overpriced listings chasing the market. If you start out over the market, then you will wind up trying to find the market through price reductions. Problem is, you are priced above your target market of buyers.
For instance, say you list a home that should sell for $400,000 at $500,000. People in the $400,000 price range won’t notice your home because it is “out of their range”.
The other side of this is that people that are looking for $500,000 homes won’t consider your home because it doesn’t compare favorably to actual $500,000 homes–it is inferior.
So, what happens is you end up on the market for longer (past 400 days!), and end up selling for less. This is a very easily avoidable problem–by simply paying attention to the numbers from the Charleston MLS.
Only 8 homes currently for sale in Ion are listed at or under $279/sq ft. So, this might explain all the above numbers a little clearer.
The demand for homes in Ion is there, but buyers simply do not have a good selection of serious sellers–sellers that understand the current market numbers and are willing to sell accordingly.
Perhaps the sellers are too stubborn, perhaps their real estate agents do not understand.
So, what does this mean for buyers? Selection is limited. However, a good deal could still be had. For homes that have been listed over 100 days, the sellers could be very motivated to sell.
Armed with this data, a buyer could make a fair market offer and justify their price. It is entirely possible that a seller may be too stubborn and is stuck on “their price”. However, the market doesn’t lie, so if this is the case, move on.
For sellers. it might seem like a bad time to sell with the Average Price numbers declining. Perhaps waiting might be a better option to see if some of these old listings finally sell or simply get taken off the market.
It is obvious that the sellers are simply receiving bad information, or just aren’t serious about selling.
For sellers that still want or need to sell, then it is critically important to price their home according to the market right from the beginning.
No “testing the market” or “trying to see if we can get more”–that obviously is not working. But at the right price, it shouldn’t be hard to sell in Ion–it is obvious there is a demand there.
If you are looking at buying in Ion, check out my Ion buyers page.
If you are considering selling, then you can get an instant Home Value Estimate at www.HolyCityHomeValues.com. You can also get a more Comprehensive Market Analysis there as well.
You can also visit my sellers page and receive lots of cool freebies, including sellers guides and an outline of my comprehensive marketing plan to get your home sold–not just listed.
You can also see live, updated stats of homes for sale in Ion on my Ion page.