Properties Sold Under $500,000 in 2013 Represented 90% of All Sales

 Further to my prior post, 2013 was the best year in six years for area real estate sales.  In addition to almost 2,100 MLS® sale transactions, sales for the year of just under $625 million set an all time record for MLS® sales volume in our area.

  The accompanying chart summarizes sales activity
in the various price segments of our market in 2013 compared to 2012.  With the exception of the $1 to $1.5 million range where there were 21 sales (1 less than 2012) every other price range showed an increase year-over-year.

  Of the 2,099 individual MLS® sales that took place in 2013, 90% of those transactions (1,881 properties) were in the under $500,000 range.  Sales between $300,000 and $500,000 totaled 516 properties, almost 25% of the total sales and were up 12% from 2012.  This is obviously a "sweet spot" in terms of pricing and many of the developers in the area are offering a lot of new home product in this price range.  With interest rates remaining at very attractive rates, it's a great time to purchase for buyers looking to trade up to a better home or for those that may be considering a secondary property for recreational purposes.  As of this post there are 346 properties listed for sale in this price range which represents about 8 months of inventory based on the current rate of sales.

  Conversely, although sales over $1 million  were up 19% in 2013 with a total of 31 sales, there are currently 106 active MLS® listings in this price range which represents over 40 months worth of available inventory.  Obviously homeowners with a property to sell in this price range are up against a lot more competition than those with a $350,000 or $450,000 house to sell.

  Below is a more definitive summary of the various price ranges and the percent of total 2013 MLS® sales that those price ranges represent.

                        Price Range                     % of Total 2013 Sales

                      $0 to $199,999                              30.5%
                      $200,000 to $299,999                   34.5%
                      $300,000 to $399,999                   17.6%
                      $400,000 to $499,999                     7.0%
                      $500,000 to $599,999                     3.6%
                      $600,000 to $699,999                     2.8%
                      $700,000 to $799,999                     1.3%
                      $800,000 to $899,999                       .6%
                      $900,000 to $900,999                       .6%
                      $1,000,000 to $1,499,999               1.0%
                      Over $1,500,000                               .5%

  Whether you are a buyer or a seller, this is pertinent market intelligence to know.  Sellers need to know the state of the market in the particular price segment their home fits into.  How many active listings are there, how many days on average to sell and what is the typical list-to-sale price ratio?  Buyers can also benefit from the same questions.  When showing properties to a prospective buyer(s) I find that 9 times out of 10 the first question is, "How long has this home been listed.?"

  The key ingredient to the successful conclusion of any real estate transaction typically boils down to price and knowing the state of the market can be very helpful in this regard.  This is where a REALTOR® has to know their stuff in order to effectively serve their client(s).

  See the latest issue of my Georgian Triangle Real Estate News for further details in the local real estate market for 2013.