A recent USA Today article discusses how high demand and low supply have made it a seller’s market, especially for lower-priced homes. However, “that does not mean every house will sell or sell quickly.”
Sellers can still overprice in a competitive housing market if they don’t work with a REALTOR® to provide them with the most current and accurate data specific to their home.
The Boise Region is certainly experiencing that high demand, low supply dynamic; however, there is a segment of the market that is quite balanced and potentially susceptible to overpricing.
To get a local look at this national trend, we analyzed Ada County data from September 2017 — percent of original list price received, supply of inventory, and days on market — for existing homes priced below $250,000 and above $700,000.
In Ada County, the percent of the original list price received at closing was 97.9%, on average for existing homes across all price points. This means that sellers reduced their price after listing or through negotiations with a buyer by about 2%.
Taking a closer look at different price points, though, we see that existing homes listed at or above $700,000 received 90.3% to 94.8% of their original list price in September 2017. Compare that to existing homes listed at or below $250,000, which received 99.0% of their original list price, on average.
This makes sense when looking at supply by price point. As of September 2017, existing homes listed at or below $250,000 only had 0.6 months of supply, meaning buyers have to compete for homes with strong offers and are limited on what they can negotiate on, in most cases.
Compare that to existing homes listed at or above $700,000 or more, where there was at least 5.6 months of supply in September 2017, reflecting a more balanced market. As indicated by the percent of original list price received numbers, because buyers have more to choose from at this price point, they also have more room to negotiate on price.
The article notes that, “If a listing is overpriced and sits on the market for too long, it gets stale. Potential buyers will see the time on market and click past your listing, often without even looking at it.”
In Ada County, the average number of days between when an existing home was listed and went under contract — referred to as “days on market” — was at 25 days in September 2017, down 5 days from September 2016.
But again, looking at the top and bottom price points as of September 2017, existing homes listed at or above $700,000 spent an average of 60 days or more on the market, compared to just 14 days, on average, for homes listed at or below $250,000.
“Every market, city, neighborhood, and home will be different, even within the price points cited,” said Katrina Wehr, 2017 President of Boise Regional REALTORS® and Associate Broker with Keller Williams Realty Boise. “Which is why we always recommend home buyers and sellers work with a REALTOR® to get the most current and accurate information specific to their situation.”
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This report is provided Boise Regional REALTORS® (BRR), which is the largest local REALTOR® association in Idaho, with over 4,300 members and two wholly-owned subsidiaries — the Intermountain Multiple Listing Service, Inc. (IMLS) and the Boise Regional REALTORS® Foundation. This information is based on data from IMLS as of October 31, 2017, for existing, single-family homes sold in September 2017 as reported to IMLS. The term “single-family homes” includes detached single-family homes with or without acreage, as classified in the IMLS. These numbers do not include activity for mobile homes, condominiums, townhomes, land, commercial, multi-family properties (like apartment buildings), or new construction single-family homes. IMLS data is based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. These statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period. The IMLS and BRR provide these statistics for purposes of general market analysis but make no representations as to past or future performance. If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.
