REAL ESTATE MARKET REPORT LINCOLN May 2011 TABLE OF CONTENTS Market Dashboard…………………………….. Pages 1-2 Number For Sale vs. Under Contract Number Sold vs. Expired Days On Market (Sold vs. Expired) Sold Listings - Prices (Last 6 Months) Sold Listings - Days On Market (Last 6 Months) Market Summary Table……………………… .. Page 3 Glossary…………………….………………….. Page 4 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
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REAL ESTATE MARKET REPORT
LINCOLN
May
2011
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TABLE OF CONTENTS
Market Dashboard…………………………….. Pages 1-2Number For Sale vs. Under ContractNumber Sold vs. ExpiredDays On Market (Sold vs. Expired)Sold Listings - Prices (Last 6 Months)Sold Listings - Days On Market (Last 6 Months)
Market Summary Table……………………… .. Page 3
Glossary…………………….………………….. Page 4
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REAL ESTATE MARKET REPORT
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at the real estate market. Currentlythere are 499 sales pending in themarket overall, leaving 1,401 listingsstill for sale. The resulting pendingratio is 26.3% (499 divided by 1,900).So you might be asking yourself, that’sgreat… but what exactly does it mean?I’m glad you asked!
Typically, a pending ratio indicatesthe supply and demand of themarket. Specifically, a high ratiomeans that listings are in demandand quickly going to contract.Alternatively, a low ratio meansthere are not enough qualifiedbuyers for the existing supply.
“The current inventory can best bedescribed as mildly active.”
Taking a closer look, we notice thatthe $125K - $150K price range has arelatively large number of contractspending sale.
We also notice that the $100K -$125K price range has a relativelylarge inventory of properties for saleat 214 listings. The average list price(or asking price) for all properties inthis market is $196,691.
Let’s take a look
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A total of 1,039 contracts have closed in the last 6months with an average sold price of $152,732.Breaking it down, we notice that the $125K - $150Kprice range contains the highest number of soldlistings.
Alternatively, a total of 667 listings have expired inthat same period of time. Listings may expire formany reasons such as being priced too high, havingbeen adequately marketed, the property was in poorcondition, or perhaps the owner had secondthoughts about selling at this particular time. The$75K - $100K price range has the highest numberof expired listings at 112 properties.
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REAL ESTATE MARKET REPORT
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Sunday May 1st, 2011
Looking at the chart to the right, youmight be wondering why average dayson market (DOM) is important. Thisis a useful measurement because it canhelp us to determine whether we are ina buyer’s market (indicated by highDOM), or a seller’s market (indicatedby low DOM). Active listings, orproperties for sale, have been on themarket for an average of 89 days.
Analysis of sold properties for the last6 months reveals an average sold priceof $152,732 and 77 days on market.Notice that properties in the $225K -$250K price range have sold quickestover the last six months.
The recent history of sales can be seenin the two charts below. The averagesold price for the last 30 days was$155,705 with an average DOM of 82days.
Since the recent DOM is greater thanthe average DOM for the last 6months, it is a negative indicator fordemand. It is always important torealize that the real estate market canfluctuate due to many factors,including shifting interest rates, theeconomy, or seasonal changes.
“The average list-to-sales ratio forthis area is 96.4%.”
Ratios are simple ways to expressthe difference between two valuessuch as list price and sold price. Inour case, we typically use the list-to-sale ratio to determine thepercentage of the final list price thatthe buyer ultimately paid. It is a verycommon method to help buyersdecide how much to offer on aproperty.
Analysis of the absorption rateindicates an inventory of 8.1 monthsbased on the last 6 months of sales.This estimate is often used todetermine how long it would take tosell off the current inventory oflistings if all conditions remained thesame. It is significant to mention thatthis estimate does not take intoconsideration any additionalproperties that will come on themarket in the future.
Dates: 11/01/2010 - 5/01/2011 Data believed to be accurate but not guaranteed.
REAL ESTATE MARKET REPORT
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Sunday May 1st, 2011
Glossary4
1. PROPERTIES FOR SALENumber Active: The number of listings for sale which are currently being marketed but do not yet have apurchase agreement.
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b. Average Days On Market (DOM): The average marketing period of currently active listings. This does notaccount for some listings which have had a previous listing period, but were re-entered as a new listing.
c. Average List Price: The average price that a seller is currently asking.
2. CONTRACTS PENDINGa. Number Pending: The number of current listings for which a contract has been signed but has not yet
closed.b. Pending Ratio: Sometimes called a “list to pending ratio”. This is a measure of how fast properties are
going under contract vs. how fast they are being listed.
Pending Ratio= P(Number of Pending Listings)A+P(Number of Active + Pending)
(P) represents properties that buyers have chosen(A+P) represents the entire pool from which they have chosen
3. EXPIRED LISTINGSa. Number Expired: The number of listing agreements that have expired in the last 6 months. Some owners
may choose to re-offer their property for sale.
4. PROPERTIES SOLDa. Number Sold: The number of properties that have gone to a closing in the last 6 months.
b. Average Days On Market (DOM): The average marketing time it has taken to sell in the last 6 months.
c. Average Original List Price: The average price at which a sold property was originally marketed.
d. Average List Price: The average price at which a sold property was marketed just prior to selling.e. Average Sold Price: The average price for which a property sold.f. List to Sales Ratio: The percentage of the list price that the buyer ultimately paid for the property.
List to Sales Ratio= Average Sold PriceAverage List Price
5. OTHERAbsorption Rate/Months of Inventory: An estimate of how fast listings are currently selling measured inmonths. For example, if 100 properties sell per month and there are 800 properties for sale - there is an 8month supply of inventory before counting the additional properties that will come on the market.