The California Association of Realtors does a phone survey every month of 300 realtors (there are more than 250,000 licensees in the state). They don’t offer any analysis on what their data means, or how to digest it – just the results:
• 40% of transactions are closing below asking price, 34% are closing above asking price, and 26% are closing at asking. The discount on asking price is 7%, on average, down for the first time in 4 months. The premium paid over asking price is 8%, on average, down from 10% in April, but up from 6.5% in May 2014.
• 65% of properties are receiving multiple offers, down from 72% in April and up from 62% in May 2014. The average number of offers per property declined for the first time in 3 months to 2.8, from 3.6 in April.
• The proportion of homes that had listing price reductions decreased from 28% in April to 25% in May.
• Floor calls, listing appointments, and open house traffic are up when compared to last month.
• Auctions are down from last month.
• All cash purchases are flat from last month
• Open house traffic and all cash purchases are up from last year.
• Open house traffic is up compared to a year ago.
• Auctions and all cash purchases are down from last year.
• The majority of members expect the same or better market conditions over the next year.
Great news for sellers! A third of you will get 8% over your price, a quarter of you will get your price, and the rest will have to live with a 7% discount. 😆
Seriously, if these results show anything, it’s that the ‘market’ is a mixed bag – and more random than ever. The houses that are selling are those that are relatively-well-fixed-up and priced attractively, and those owned by sellers who can live with a discount for doing little or no repairs/improvements. Make sure you pay the right price, for the right product!