The State of the Real Estate Market in 2011 at Sawgrass can be summed up as follows:
- Sales Up - Almost 40%.
- Prices Down - Close to 6%.
2011 was a good year at Sawgrass. There were more homes for sale, 7.7% more in 2011 versus 2010, but more noteworthy, the actual number of homes sold increased 38.8%. On the other hand, prices came down anywhere from 5.4% to 8.3%, depending on whether the calculation was based on average sold price, median sold price or average square foot sold price. Homes stayed on the market longer; of those that sold, 120 days in 2011, compared to 100 days in 2010. Historically, when properly priced, a home will sell within 10% of its proper list price, and not before. See the graph below. Of the homes sold, there was an 11% spread between the original list price and the eventual sold price. In 2010 the spread between the original list price and the sold price was 9%. That 2% increased differential in the original list price in 2011 versus 2010, is likely the reason homes stayed on the market longer in 2011. What is particularly noteworthy is that homes did not sell in 2011 until such time as the spread between the final reduced list price and the actual selling price was 6%, the same as in 2010. Therein lies the challenge for sellers … seeing things as they are, not as one would like them to be; aligning one’s expectations with current conditions.
Home Sales at Sawgrass 2011. - For Sale - Increased 7.7% in 2011; on average 28 available on any given day in 2011, 26 in 2010.
- Sold - Increased 38.8% in 2011; 49 sold in 2011, 30 in 2010.
- Average Sold Price per Square Foot - Decreased 8.3% in 2011; $138/sq. ft. in 2011, $151/ sq. ft. in 2010.
- Average Sold Price – Decreased 5.4% in 2011; $296,000 in 2011, $313,000 in 2010.
- Median Sold Price – Decreased 5.7% in 2011; $300,000 in 2011, $318,000 in 2010.
- Average Active List Price – Decreased 1.6%; $363,000 in 2011, $369,000 in 2010.
- Difference Between Sold & Original List Price - Increased 2.2% in 2011; 11% spread in 2011, 9% in 2010.
- Difference Between Sold Price & Final List Price – No change in 2011; 6% spread in 2011, 6% in 2010.
- Days on the Market - Increased 20%; 120 days in 2011, 100 days in 2010.
- Months of Inventory (Based on Closed Sales) – Decreased 19.2% in 2011; 7 months in 2011, 8.7 in 2010.
Buyers are coming in with a very sharp pencil. They’ve done their homework. They’ve been educated by their agents. They know value. Today, the housing market can be compared to shopping for a car or a major appliance. Much of the negotiations have been taken away by the internet and comparative shopping sites. If you have bought a car in the past year or so, you know there is very little negotiation, because all of the information is known and available. There are no secrets. The same is carrying over to the housing market. The difference is that a home is not a commodity, no two homes are alike. That’s where the experience of an agent who knows the area and the competition is invaluable. And, the negotiation skills to sharpen that pencil and hone that price to where it should be.
