what follows is a recent letter I sent to members of the I’On community
Youâ€™ve likely noticed the large number of â€śFor Saleâ€ť signs in Iâ€™On. The â€śFor Saleâ€ť inventory has been up and down throughout 2007. On January 1, 66 homes were on the market. This number grew to a peak of 96 on May 19, before dipping to 75 on September 5. Over the last 45 days, the number of homes on the market has climbed back to 92. Of these, 23 are new homes and 69 are what we in the real estate business refer to as â€śre-salesâ€ť (homes that have previously been sold and occupied). These 92 homes constitute 15% of the total completed housing stock of 609 homes in Iâ€™On. The average price of the 44 homes sold is $952,885. The average price of the 92 homes for sale is $1,224,287.
There are two sides to every real estate transaction: a listing side and a selling side. Some companies do better at listing homes. Others do better at bringing in clients to purchase the homes listed by others. 80% of the time a home listed by one companyâ€™s agent is sold in cooperation with another companyâ€™s agent who introduces the purchaser to the home.
Time was, people built or bought a home for their family and stayed in it for years, often handing it down to future generations. Unfortunately, our highly mobile society makes such long term real estate holdings exceedingly rare. While we never like to see anyone leave the neighborhood, if you are thinking about selling your home, here are a few tips to keep in mind when choosing a company to represent what may be your most valuable asset:
1. Knowledge of the market. Expect the listing company to conduct deep analysis of recently sold homes, as well as competing product on your street, in the neighborhood, municipality, and region. Ask to see this analysis.
2. Track record. It is one thing to list a home, quite another to get it sold. Ask to see evidence of the companyâ€™s performance in getting their listings sold in a reasonable amount of time at a sales price close to the offering price.
3. Representation. How will the offering be communicated to other real estate agents and to the public at large?
4. Work load. In this highly competitive buyersâ€™ market, choose someone willing to focus on getting your home sold.
Through the first nine months of 2007, 44 Iâ€™On homes changed hands. Of these 44 sales, 37 (84%) were listed by six companies (Iâ€™On Realty, Keller Williams, Prudential Carolina, Places, Harbourtown, and Daniel Ravenel). Seven other companies handled the listings for the other 7 sales. Of the 92 homes currently listed for sale in Iâ€™On, 70 (76%) are listed by the six previously mentioned companies. The other 22 homes for sale are being listed by 22 other companies.
Based on the number of homes sold during the first nine months of the year, Iâ€™On Realty maintains the lowest inventory level of â€śFor Saleâ€ť homes and the highest average percentage of sales price/listing price of all major companies doing business in Iâ€™On. This is due to two things: (1) our professional and dedicated sales and support staff whose total focus is on beautiful Iâ€™On; and (2) the strong relationships our team has built over time with other agents in the Charleston area. We are fortunate to have such hard working, talented agents who are so enthusiastic about the neighborhood. For a list of the number of homes sold and currently listed, please see the reverse side of this letter.
A few years ago we experienced a strong â€śSellersâ€™ Market,â€ť meaning there was greater demand chasing a more limited supply of homes. This put upward pressure on prices. Today we are in a â€śBuyersâ€™ Market,â€ť meaning there is less demand chasing a greater supply of homes. This puts downward pressure on prices. If you are thinking about selling your home and have some flexibility, you might want to consider waiting until the inventory levels subside. If you donâ€™t have such flexibility, then careful consideration should be given to pricing your home to be competitive in the marketplace.
Vincent G. Graham
P.S. â€“ In last weekâ€™s report, I wrote that the number of homes under construction nine years ago was roughly double the number of homes being built in the neighborhood today. This was incorrect. There were 40 homes under construction 9 years ago and 30 today. My apologies for the misstatement.
P.P.S. â€“ Further market updates will be presented via email. If you would like to continue to receive these updates, please send your name and email address to Tiffany Shanklin at firstname.lastname@example.org.
Six companies with the most listing and sales activity in Iâ€™On this year.
Real Estate # Listings Current Home
Company Sold in 2007 Listings For Sale
Iâ€™On Realty 18 22
Keller Williams 9 15
Prudential Carolina 4 16
Places 3 13
Harbourtown 2 0
Daniel Ravenel 1 4
All Others 7 22
TOTAL 44 92*
AVG. PRICE $952,885
MEDIAN PRICE $821,977
*Based on a sales pace of 4.89 homes/month over the last 9 months (44 sold/9 months), the current inventory of 92 represents a 19 month supply of homes on the market (92/4.89 = 18.82 months).
Filed under: I'On Village on October 25th, 2007