Update on the local Real Estate Market: Currently there are 25 sales pending in the market overall, leaving 161 listings still for sale.
The resulting pending ratio is 13.4% (25 divided by 186). So you might be asking yourself, that's great... but what exactly does it mean? I'm glad you asked.
The pending ratio indicates the supply and demand of the market. Specifically, a high ratio means that listings are in demand and quickly going to contract. Alternatively, a low ratio means there are not enough qualified buyers for the existing supply.
Taking a closer look, we notice that the $200K - $400K price range has a relatively large number of contracts pending sale.
We also notice that the $400K - $600K price range has a relatively large inventory of properties for sale at 35 listings. The average list price (or asking price) for all properties in this market is $935,620.
A total of 59 contracts have closed in the last 6 months with an average sold price of $503,822. Breaking it down, we notice that the $200K - $400K price range contains the highest number of sold listings.
Alternatively, a total of 76 listings have failed to sell in that same period of time. Listings may fail to sell for many reasons such as being priced too high, having been inadequately marketed, the property was in poor condition, or perhaps the owner had second thoughts about selling at this particular time. The $200K - $400K price range has a high number of off-market listings at 19 properties.
Looking at the chart above, you might be wondering why average days on market (DOM) is important. This is a useful measurement because it can help us to determine whether we are in a buyer's market (indicated by high DOM), or a seller's market (indicated by low DOM). Active listings (properties for sale) have been on the market for an average of 419 days.
Analysis of sold properties for the last six months reveals an average sold price of $503,822 and 342 days on market. Notice that properties in the $1.0M - $1.2M price range have sold quickest over the last six months.
The recent history of sales can be seen in the two charts below. The average sold price for the last 30 days was $327,167 with an average DOM of 530 days.
Since the recent DOM is greater than the average DOM for the last 6 months, it is a negative indicator for demand. It is always important to realize that real estate markets can fluctuate due to many factors, including shifting interest rates, the economy, or seasonal changes.
"The average list-to-sales ratio for this area is 90.5%."
Ratios are simple ways to express the difference between two values such as list price and sold price. In our case, we typically use the list-to-sale ratio to determine the percentage of the final list price that the buyer ultimately paid. It is a very common method to help buyers decide how much to offer on a property.
Analysis of the absorption rate indicates an inventory of 16.4 months based on the last 6 months of sales. This estimate is often used to determine how long it would take to sell off the current inventory of properties if all conditions remained the same. It is significant to mention that this estimate does not take into consideration any additional properties that will come onto the market in the future.
- Report by Gary Franklin Owner/Manager Windermere Real Estate San Juan Island