Can we predict what sellers will do next year?
Let’s look at what they are doing now – certainly today’s sellers have heard that market is hot due to the low inventory, and they are hoping to capitalize. Can they keep their optimism under control?
This should be a conservative look too, because anyone who is listing their house for sale in November is probably more motivated than those putting their home on the market in springtime:
New listings of NSDCC detached-homes between October 1 and November 15th
|Year||# of New Listings||LP avg $/sf|
Fewer are coming on this year, but on average, they are listing for 15% higher than last year. Sellers are pushing it, and that is likely to continue. If buyers don’t respond, we should have an OPT-glut by April/May. The over-priced turkeys tend to feed off each other, justifying their high price by comparing to their neighbor’s similar fantasyland price.
This year there have been 189 of the 464 (41%) marked contingent, pending or sold, which is pretty good for the holiday season. The 27 that closed have averaged $485/sf, but if you remove the 3 highest and lowest sales, the average drops to $420/sf.
Buyers aren’t letting up in their pursuit of a purchase! Will they pay more?