Home For Sale In Ion: How’s The Market?
Today I am looking at the Charleston MLS to see the latest stats for homes for sale in Ion. Yesterday, I posted an infographic that compared the 2015 YTD stats for Ion to the 2014 averages:
First, I am going to look at the month of January and see how it compares to last January (as well as December). Then, I will look a little closer at where things stand right now in Ion compared to 2014.
So, first up is Closed Sales:
In January there were 5 Closed Sales, which is up from the 0 Closed Sales in December. In January 2014 there were also 4 Closed Sales. December 2013 saw 2 Closed Sales.
Next up is Pending Sales:
In January there were 2 Pending Sales in Ion. December saw 4. Last January there were 3. Last year the Ion market started slow, but rose quickly into the May peak. Will we see that repeat in 2015? More on that in a minute.
How are home values in Ion? Here is a look at the Average Sales Price:
As you can see, that number has shot up. In January the Average Sales Price for homes for sale in Ion was $1,167,500.
Since there were no sales in December, the last Average Sales Price data is from November, which saw an Average Price of $835,000.
For January of 2014, the Average Sales Price was $894,500.
Next is the Average Days On The Market (DOM):
That number also shot up, to 173 DOM in January. That is up from the 81 DOM in November, and above the 115 DOM in January of 2014. The overall average for 2014 was 85.
Finally, a look at the Months Supply of Inventory:
That number had been on the decline over the last few months of 2014, but is back up in January, to 4.1 Months Supply. In December it was 3.5 Months.
January of 2014 it was 5.3. The Average Months Supply of 2014 was 4.49. For all of 2014, Ion was in a Sellers Market and continues to be.
Now, let’s take a look at the 2015 YTD stats and see how they compare to the 2014 averages.
First, the Average Sales Prices: 2014 Average: $957,690 2015 YTD Average: $1,078,750
Average Days On The Market (DOM): 2014: 85 DOM 2015 YTD: 163
Average Price Per Sq Ft: 2014 Average: $298.16 2015 YTD: $293.46
YTD Closed Sales: 2014: 10 2015: 6
So, 2015 is seeing an increase in home values, but less sales (so far) and the DOM in way up, and Price Per Sq Ft is down (slightly).
Looking at the 6 Closed Sales so far in 2015 better explains this. Of the 6 homes that closed, only 2 of them were on the market less than the 2014 Average DOM of 85.
2 of the homes were on the market for very long times–one was 350 DOM and the other 245 DOM. Looking closer at the two, you can see that they started off by being overpriced and then chased the market.
The first home cam on the market listed at $278/sq ft, although the Average Price Per Square Foot at the time was $253/sq ft.
This home reduced it’s initial list price from $1,085,000 to $995,000 and finally sold at $950,000.
The second home started at $325/sq ft even though the market was at $297/sq ft. This home sat on it’s price, never reducing, and finally, 245 days later, sold at $1,742,500 which was $290.42/sq ft.
These homes still sold for a higher than average price, thus helping the Average Sales Price numbers for 2015.
However, they were clearly overpriced to start and chased the market, thus inflating the DOM numbers.
This is a classic example of the importance on pricing a home correctly from the start. It is also why it is important to carefully look into the numbers of a particular market and dig deeper.
For many would be sellers in Ion, they may see that the DOM shot up, from 81 in November to 173 in January and think that the market is going bad.
However, after looking deeper we see that it is because some homes were overpriced.
Currently, there are 25 homes for sale in Ion. There are 3 Pending Sales, and another 4 under contract.
The Pending Sales average a Price Per Sq Ft of $231.70, 27 DOM, and an Average List Price of $652,500. It is important to note that 2 of these homes are smaller and in a lower price range than the average for Ion.
The Contingent Sales average a Price Per Sq ft of $315.61, 97 DOM, and an Average List Price of $1,024,250.
Keep in mind that we will not know what price these homes sold for until after they close. Plus, not all 7 may end up closing.
The Pending numbers could hurt the Average Sales Price and Price Per Sq Ft numbers, although they will help the Average DOM.
The Contingent homes look to boost all the numbers. It is also important to keep in mind that we are comparing a small sample size to an entire year.
If you are interested in keeping up with the latest stats for homes for sale in Ion, then check out my Pam Marshall Realtor Ion page.
Whether you are thinking of buying or selling, hopefully you can see how important it is to not only know the market numbers, but to understand them as well.
As a buyer, you can gain more leverage in negotiations when you know what the Average DOM is, and what the Average Price Per Sq ft is.
Homes that have been on the market longer than normal are likely eager to sell–armed with the latest data you might be able to convince a seller that a lower price is justified by what the market is saying.
If you are selling, it is important to know the data so that you do not spend months on the market chasing it–only to sell for much less than you thought.
Imagine the disappointment of the first house example above.
They probably figured they would sell for their list price (or close), only to chase the market, and after one big price reduction, finally selling right at an ENTIRE YEAR later, and for $135,000 less!!
Had they listed at the correct price, they could have made $39,500 more.
Don’t let this happen to you! It is important to hire an agent that knows the market beyond simply the latest numbers.
If you are selling, you also need an agent that knows more than properly pricing your home–they also have to know how to market it effectively.
Bee sure to visit my Pam Marshall Realtor website and you will see why I am the right agent to help you buy or sell homes for sale in Ion.