In the past few months we’ve been on several listing appointments and sellers usually ask how their price range stacks up against the market. Current listings by price range really only tells half the story, so this article will attempt to cover the other half.
Inventory by Price Range
As you can tell by the published graph, the $100,000-$149,999 currently has the most listings followed by the $400,000-$599,999 range. By looking solely at the graph one might think there is a backlog of homes on the market in the $100-150k range. This just simply isn’t true.
Would it surprise you to learn that in that same $100-149,999 range there were 2,670 single family home sales in Lee County last year? That works out to a 3.61 month supply of homes on the market. Conversely, the $400k-$599,999 range had 869 sales last year. This works out to an 11.72 month supply of homes on the market. Even though the $100k range has the most homes on the market, it is a much healthier market because there are more than enough buyers in that range to absorb the inventory.
We created a custom graph using the exact same price points to illustrate how each price range is doing. In essence, the lower the price range, the more range of buyers there are for a home and the most demand. The market is best able to absorb the existing inventory from the lowest price range on up to the highest.
If you’re a seller with a million dollar plus home, you have about a 3 year supply of homes on the market that is competition for your home. This is assuming no other homes come on the market. If your home is in the $400,000-$600,000 price range, you have about a 1 year supply of homes on the market as competition.
It’s easy to see by the graph how your home rates by price range. This is important knowledge. If you would like to sell a home in 4 months time or less all you have to do is look at what price range you’re in and see what the competition is. If you’re in the $600,000+ range which has a 15.96 month supply of homes on the market and you wish to sell in 4 months or less, it pays to be realistic and price your home more aggressively against the competition.
Many home sellers mistakenly believe they can set the price and buyers have to pay it. It’s true, the seller does set the price, but the market determines the value. Buyers are not only shopping your home but many others like yours in your price range.
If you have a home to sell it pays to know how much you should sell it for. We compare your home against like kind comparables that have closed recently. We also show you how your home stacks up against other current homes for sale. You never want to under price your home because if you do you just give away your equity to the buyer. You also don’t want to overprice your home either because if you do you’ll help sell your competition and insure your home stays on the market longer, and history proves that homes that linger on the market sell for less than homes that were priced correctly upfront.
If you have a house to sell, call us at 239-489-4042. We’ll guide you through the home selling process and cut through all the clutter. Good luck and happy home selling!
If you’d like to search the market as either a buyer or seller, visit www.Topagent.com If you need extra help we’re always available to talk to you and help you make better decisions. Our phone number is 239-489-4042 Good luck and Happy House Hunting!
To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042 Good luck and Happy House Hunting!!!
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