This is a snapshot analysis of home sales in Venice for July 2017.
The market has clearly shifted from a Seller’s Market to a Balanced Market. For the month of July the supply of homes for sale was 3.7 months. The average sold price per square foot was $170, up 4.3% compared to last year. While $266,000, was the average sold price, up 0.4% compared to last year. The number of days it took for a home to go from listing to contract remained steady at 76 days. The sold to original list price ratio was 93%, while the sold to final list price ratio was 96%.
The data indicates that although inventory is low, prices are no longer rising at double digits as it had the past few years. Prices continue to rise, but in accordance with historical norms of 3-6%. It is worth noting that moderated, single digit price appreciation comes in the face of limited supply. Typically, low supply, higher demand. The demand is there, verified by the fact that homes are going under contract in 76 days (relatively short period of time). However, it comes with a caveat: Homes will generally only go under contract when the list price is no greater than 4% above its fair market value (sold to final list price ratio is 96% as described above).
Bottom Line: The real estate market is healthy and prices are appreciating at historically sustainable levels.
The Key: Proper pricing, i.e., 96% sold to list price ratio.