The question is, “How can we sell more properties than are on the market?”
At the end of September, we had 583 properties on the market in Ada County. At the end of October, we had 495 properties. And yet, we had 1,261 sales during October and 2,008 pending contracts at the end of October.
How can this happen? The answer is that properties don’t stay on the market very long. On a day when 40 properties are listed and brought into inventory, 42 properties might have been sold. Hence, sales velocity. The cumulative days on market (CDOM on our charts) for existing properties is 21 days – and that includes the time necessary to arrange for an appraisal and process a loan on most properties.
Have you been thinking of selling?
Another telling statistic for this most unusual market is that the average sold price is 99.8% of the average list price – not much of a discount. If you like it, buy it! The average price of sold properties over the last 12 months is $424,161, a 14% increase over the previous 12 months.
Consult your Group One Sotheby’s sales professional to develop a strategy for taking advantage of this unique market.
The chart below shows how the price per square foot of existing home sales compared to new home sales has narrowed over recent years, making existing (or resale) properties much more valuable.