Blanket statements about the real estate market can be so miss leading. Media reports and industry reports all tell us that the average sales price is down over last year’s prices. Statistically this is correct but a closer look at the market is required to find out how this applies to you.
In the table below I’ve separated sales and listing in $100,000 increments and calculated their percentage.
Price Range | Listings | Sales |
000 – 300K | 1.4% | 3.5% |
300 – 400K | 21.8% | 35.2% |
400 – 500K | 21.3% | 31.9% |
500 – 600K | 18.5% | 17.6% |
600 – 700K | 18.9% | 6.4% |
700 – 800K | 4.8% | 2.5% |
800 – 900K | 2.8% | 2.2% |
900 – 1,000K | 1.7% | 0.7% |
1,000,000 above | 8.7% | 0.0% |
Sales and listings of houses up to $500,000 account for 67% of market but only account for 45% of the available listings. Sales and listings of house above $500,000 account for 33% of sales and 55% of listings. Did you notice that 8.7% of listings are above $1,000,000 but there have been no sales above $1,000,000 this year?
With such strong demand in the below $500,000 range and so little demand above $500,000 there are occurrences in the market that are predictable. It is my observation that prices are not declining in the up to $500,000 range. True. There have been some price deductions in this range but they were over priced hopeful that the market would bolt forward. Accurately priced houses in the range continue to sell.
What I’ve seen above $500,000 is significant price reduction with listings receiving few ad calls, few open house attendees and few showing. For the buyer there are great opportunities in the price range. Demand is down and supply is up which calls for a price adjustment.
I can help you determine where you fit into this market and what choices are available.
Call my office at 604-852-2234 and let’s talk.