Summit County homes are taking longer to sell. The average time on the market is just 36 days, however, that is feeling like an eternity. When we have been used to buyers lining up for homes, to watch them just sit there is excruciating. This extra time on the market is not creating a lot of turmoil in the overall market just yet. Inventory is still low and prices are still high.
Taking longer to sell
For the last 12 months most residential properties have been selling in the first 30 days. In fact 77.3% of residential sales were under contract within a month of going up for sale. Just 4.2% lasted longer than 90 days. The average number of days a home is on the market is 23. The median is drastically lower at only 6. A few homes lagging on the market are pulling the average higher. However, during September, the average jumped to 36 days and the median soared to 29. This change is the result of only 51% of homes selling in the first 30 days. Still a low 6.6% lasted longer than 90 days. Not only do we see Summit County homes taking longer to sell, the numbers are reflecting it.
Because inventory levels are low, many sellers are still holding onto the hope that a buyer is out there waiting for a property like theirs to come on the market. They price it accordingly. As homes take longer to sell, the hope sellers had for a swarm of buyers diminish and price reductions begin. We have seen levelling off and downturns in the real estate market before. However, it has been over a decade since the last one. It is a change in mindset from a rising market. Transitions are always difficult, but especially after the intense, rising market conditions during the pandemic. As difficult as it might be, it is in the seller’s best interest to embrace the changing market right off the bat.
Price reductions are happening
As I just mentioned, price reductions are happening. We are seeing them every day. When homes take longer to sell, price reductions are much more likely. Some properties are definitely priced and selling below market highs. But not every property. The average, residential sale price this September is $1,250,601. That’s slightly higher than the September 2021 average. Last September had a sale above $5 million, this September’s high was $8 million. That could account for the higher average. I am pretty skeptical about using the average sale price to determine appreciation or depreciation. There is no substitute for digging into the numbers and comparing apples to apples for a specific property. As they say, the national average is not indicative of local market conditions. Even the local market average may not reflect the particular segment or property accurately.
What to do
While the market has changed, it does not mean it is not the right time to sell your home. It does mean, if selling is the path you choose to take, know the market and set your expectations accordingly. We are always happy to discuss the Summit County market with you. We will educate you on current conditions and how they may play into the sale of your home. We are here to help with the information you need to make your best decision.