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Looking For Price Increases

We’ve had a truckload of more sales recently, but statistically the pricing hasn’t been rising – the average cost-per-sf of summer detached-home sales around NSDCC is trending flat to slightly downward year-over-year.  Apparently, buyers have engaged mostly due to the low mortgage rates, but they are still reluctant to pay more than the last guy – and we know sellers are tempting them!

Here are the NSDCC detached-home # of sales, and cost-per-sf between June 1st and Sept. 30th:

Price Range 2010# Avg. $/sf 2011# Avg. $/sf 2012# Avg $/sf

It’s incredible to see how sales jumped 31% on the higher-end, yet the average cost-per-sf hasn’t risen. It should make it easy for sellers – if you are willing to sell for the same amount as the last guy, you have it made.

The median price doesn’t matter much in the closed-end ranges, you know that they will be around the middle of the range.  What has happened to the median stats in the million-dollar-plus club?

$1M+ Sales 2010 2011 2012
Median SP $1,385,000 $1,425,000 $1,425,000
Median $/sf $399/sf $411/sf $399/sf

The uniformity is incredible, plus let’s marvel at the fact that there were 421 sales over $1,000,000 in a four-month period this year! There haven’t been that many million-dollar sales in the same summertime period since 2007 – which was the peak.

Transparency deserves the credit for prices staying stable. With the internet making it easier than ever for all players to determine values, buyers are anxious to pay a fair price, but that’s it.