February saw the beginning of the Spring market on Cape Cod and the numbers tell an interesting tale. We notice that average days on market has been steadily increasing while average percent of original price received has been declining. It seems that buyers in the market are responding to overpriced houses by waiting longer to make offers and ultimately offering less. We see this time and time again in smaller markets too, take an analysis we did for a client recently: Brewster Single Family sales in 2018.
I'll explain briefly:
Blue columns indicate the current price as a % of the original asking price. In other words, the price that actually attracted a buyer.
Orange columns indicate the sale price as a % of the original price.
The three groups of columns show the houses that sold the fastest selling (left group at less than 25 days), median (middle group), and slowest selling (right group at more than 105 days).
Given all of that, we see houses that sell faster sell for closer to the asking price. Homes that are on the market for longest are reduced to 94% of the original asking price before they attract a buyer and sell for only 90% of the original asking price. The takeaway is clear: if you price your house too high, it could spend more time on market and receive significantly less than the original asking price - ultimately costing you money. It is important to work with local real estate experts to be sure you are well informed about how pricing strategies ultimately affect your bottom line.
|Median Sales Price||$385K||$395K||$408K|
|Avg Days on Market||95||112||130|
|Avg % of Original Price||93%||92%||91%|