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Cottage Lake Statistics

ChartI often get calls from clients asking about the current value of their homes, given the state of the current housing market.  This usually leads to an in-home visit and catching up on the good times (what? You didn’t have a good time with your real estate agent while searching for a home?).  Eventually, the conversation turns back to real estate and I’m forced to talk about work.

The Drop In Housing Prices

For the past few years, real estate values have dropped back to circa 2003 price levels.  Shocking, but certainly not new information to anybody that has a pulse. That means if you purchased a home anytime after 2003, it’s possible that your home value has dropped.  This is just an average, as there are some areas where values have remained higher, and others where they’ve dropped even more.

The light at the end of the tunnel, however, is getting brighter.  In Woodinville, where I live, homes are moving!  I’ve provided some charts below for my specific neighborhood around Cottage Lake, and I’ll try and point out some highlights.

The chart below shows the trending Avg Price/Sqft.
The main takeaway is that the Price/Sqft is starting to climb back up. This is good!

This next chart shows the gap between the Asking Prices and the Sold Prices.
A few things to point out here:

  • While the sales prices are still lower than the same time last year, the prices seem to have stabilized a bit and have even increased from last month.
  • The Asking Prices also decreased, but the thing to note is the GAP between the Asking and Sales prices. They have narrowed over the past year, which means that sellers are FINALLY realizing that their home values went down. This is HUGE because it affected the market times in a negative way (as seen in the next chart below this one).

The Dangers Of Overpricing Your Home

The chart below shows the Months of Inventory. As I noted above,the larger the GAP between the Asking Price and the Sold Price, the longer the home will sit on the market. Think about it. Buyers seem to know the intrinsic value of a home better than the sellers (because the buyers are IN the market, while sellers are ON the market). When a home is overpriced, it will linger until either the price is reduced or the frustrated seller removes the home from the pool of inventory (cancels the listing). Every day that a home sits on the market, it is considered INVENTORY. Hence, shorter market times lead to less inventory and a more balanced market.

Would you like specific statistics for your neighborhood? Give me a call and I’d be happy to provide them to you. Are you thinking of selling your home? I can help there as well. Let’s chat!

When REALiTY BiTES, bite back!

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