One statistic used to gauge the strength of the real estate market is the list
price to sale price ratio. The thinking goes that the closer the ratio is to
100% - sales prices matching list prices - the stronger pricing power a seller
has. But this can be misleading. More on that in another blog. A more useful
measure is simply to look at the frequency and size of price reductions - the
difference between the original list price of a property and the final list
price when the property went under contract.
In Ox Bottom, the general trend has been toward fewer and smaller price
reductions before a home is sold. There are two factors that contribute to this
trend:
1. Tallahassee sellers and agents are more accurately estimating true market
values
2. Sellers are gaining more power as prices improve and housing inventories
tighten
In 2010, the average Ox Bottom price reduction needed before a home sale was
$20,685. In 2013, that number has shrunk to $7,497. Clearly, home sellers are
gaining some ground after several years of strong buyers markets.
Curious about how much pricing power you would have as a seller? Contact us
through one of our forms on this website, or call 850.445.2476. We'd be happy
to help.
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