There is a general feeling among many living in Central Oregon that housing inventory is low and homes are flying off the market just days after they go Active. Well…some of those feeling are certainly based on facts – but there is a bunch more to the story that potential sellers need to know.
Yes…inventory is low. We currently have just over two months supply of available homes given the current rate of sales. HOWEVER – The rate at which homes are sold is directly dependent on where they are located and whether or not they are priced correctly. (It’s also worth noting that homes on acreage are taking longer to sell than homes on typical residential lots.)
For instance – there are currently 343 homes for sale priced at $750,000 or more in Bend, Redmond and Sisters. The average list price for all those homes is $1,407,642 with the lowest price being $750,000 and the highest being a listing in Sisters that is on the market at $24,000,000. The average time that these homes have been on the market is 180 days. One of these homes has been on the market a tad over 3,000 days! So what gives? If we are supposed to be in a seller’s market where homes are getting multiple offers and flying off the market – how can this be?
For the most part, the answer is simple; Many sellers have an over-inflated idea about what their homes are truly worth. And they don’t have a plan worked out with their real estate broker at the time they list that guides them as a team if the home isn’t getting showings and doesn’t sell in the first 90 days or so. As I tell all of my sellers at the time I list their property: The market is going to tell you one of three things when it comes to your price;
- You will get showings and an offer. Hurray!
- You will get showings but NO offers. Ugh. That usually means they like the product but not the price. Or…there is something about the home or setting that is a deal-breaker.
- Crickets. Ouch. This means the buyers think your price is so high they aren’t even going to go and look.
It is really important to truly know WHY your home is being priced where it is if you are selling. Sure…it’s okay to price a bit above market if you think the home is in a truly “hot” area or has features that are unique. But it is equally important to have a plan, agreed to in advance, that guides you if your home doesn’t get an acceptable offer within a predetermined amount of time.
There is nothing more frustrating for a seller than to have their home sit….and sit….and sit. A good broker will discuss honestly any issues that can hinder the sale of your home. And almost every home has some issue that will be a negative to some buyers.
So the punchline is this; Not ALL homes in Central Oregon are flying off the market at shoot-the-moon prices. Northwest Crossing and a few other areas are the exception to that, generally speaking. So get good information and work with a broker (sorta like me) who will give you the straight scoop about where your home should be priced. You’ll be much less frustrated in the long run. Back soon…