This will be a fun note … I’m excited to talk about RealCentralVA’s new look, and some of the back-end changes that will help me focus more on writing than messing with the blog itself. Also, I’ll be looking back at the 2014 Charlottesville real estate market, looking forward to 2015, and a few other interesting things. […]
I have long told my daughters to question everything and never accept at face value what they’re told. Same goes for real estate data.
What’s the list to sales price ratio for homes in Charlottesville?
It’s a good question.
The list to sale ratio is a great number to know – whether you’re buying a home, selling a home (or advising buyers or sellers). This ratio is a solid indicator the movement of the market, whether sellers are pricing well and correctly and whether buyers are paying close to asking price. Unfortunately, at its aggregate, it’s a garbage number. If you’re trying to use this data point as you try to figure out the market – ask questions. Always.
I randomly picked 10 sold homes from the Charlottesville MSA across the price ranges from $100k to one million. (I did this last in 2010 in which I chose 6 homes â€¦ the results were the same.
- No foreclosures or short sales
- Sold in September 2013
- No new construction
- Determining Days on Market was a challenge as well. Some of the homes I selected were on the market for less than 30 days while I made an editorial
Take the below for example. The “Original List Price” for this listing was $439,000. The actual original listing price was $510,000 – when the home was listed previously with another firm.
- Taking the top level analysis from the MLS yields: the list to sales price ratio was 94.9% of asking price.
- Running the numbers manually puts the ratio more in the 88% range. (if you were to include the listing prices from the original list date ~ 4 years ago â€¦)
- The real, actual list to sales price ratio for the randomly-selected homes – just over 80%.
This story is neither scientific or necessarily representative of what the market-wide list to sale price ratio may be. This is merely a reminder to question. Everything.
Why buy? Why rent? How to choose an ethical real estate agent or mortgage broker? What is quality inventory? Richmond Sunlight, the General Assembly and real estate. And lots, lots more. An hour of live radio goes fast. Prepping for said show takes hours. What follows are some show notes, links, supporting stories and more. If you’re interested in buying or selling in the Charlottesville area in 2013, I sincerely think this would way to spend an hour of your time.
As always, we cover a lot of ground in an hour. I do apologize; I spent an hour this morning listening to the show, researching links, putting said links in chronological order, previewed the story and *poof* it disappeared. So this story is a bit less than intended.
Perhaps my personal favorite parts are the (at 16:50) “how you say ‘wait, don’t buy that now'” when your incomes depend on sales? And then we touch on (24:30) how the consumer has a responsibility to vet the people they hire. (if you want the questions I provide my prospective clients, ask me).
If you’re feeling like the past month of real estate data releases hasn’t satiated your need for real estate information and analysis, you’re invited to listen to Matt Hodges and me this Sunday morning at 11am on WNRN radio. Whenever we do this, it’s a lot of fun – talking for an hour about real estate, mortgages, the market and often times quite a bit more generally leads to a useful and informative conversation.
If you’re local, tune in to 91.9. If you’re not local (or don’t have a radio) the interwebs have you covered.
We tend to prep for four hours’ worth of radio, talk for about and hour, and get through 20% of what we have available. Live radio is always a bit nerve-wracking as the conversation is largely unscripted, but the resulting hour podcast is something that:
1) Usually generates inspiration for at least five stories
2) I tend to refer to frequently as I typically learn something from all of the prepping and resulting conversation.
So â€¦ in prepping for the show, we’re tentatively planning on talking about:
- The Charlottesville real estate market (naturally) – how it’s doing, how it might do in 2013
- When buyers and sellers should start their respective processes. (now)
- Real estate assessments (they’re coming out very soon) and their impact on actual market value
- The Consumer Financial Protection Bureau’s recent rules (800 pages of them) and their potential impact on the market.
- Qualified Residential Mortgages (see above)
- New construction in Charlottesville
- Shadow inventory
- Redfields’ buying open space
- More quality inventory
After some more thought, I ‘m thinking we might talk about the coming Wegmans and Fresh Markets, energy efficiency in homes, realtor productivity â€¦ one of the best parts of these shows are the recap posts I write that afternoon or next morning, replete with links, research, supporting information and more.