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Question/discussion about recent list prices...

Discussion in 'Real Estate' started by BeachMac, May 16, 2015.

  1. BeachMac

    BeachMac Beach Lover

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    Looking at real estate lately, and am starting to see more and more listings added to emeraldcoasthomesonline with 2005-ish list prices. Not uncommon to see properties that according to the waltonpa.com website sold for 1/2 of the current list price in 2013 and even 2014. Can someone explain to a lay person what's going on? Since the listings I am seeing aren't closing or sold, it may be as simple as summer season and properties are being posted with optimistic and dreamy "make me move" price tags, but some of the pricing I am seeing (even on realtors' personal property) starts to feel second bubble-ish given the quickly soaring ask price, even though the reality is it may languish on the mls for many months or never sell near the ask.

    Any insight or opinions?
     
    Last edited by a moderator: May 16, 2015
  2. Garner

    Garner Beach Fanatic

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    I don't know if this helps answer your questions, but I write the real estate column for the Walton Sun. Attached is a first quarter summary of sales activity, compared to the first quarter of 2014. We have not reached the price levels of 2005 and our price increases are not showing the dramatic frenzy that we experienced at that time.

    View attachment Chandlers Report Q1 2015.pdf
     
  3. tsutcli

    tsutcli Beach Fanatic

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    Supply and demand? Just asking.
     
  4. BeachMac

    BeachMac Beach Lover

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    tsutcli, normally I'd assume so, but the listings I have followed and am referring to are not (to my knowledge) actually closing at the much higher list prices, which is why supply and demand didn't seem to explain the choice of pricing. So I was looking for what is driving the decision to list things outside current comps (and much higher than them)... Curious if there is some mindset or state of affairs I'm missing that is acting as the rationale for higher prices - outside of just a speculative hope for a large profit.

    An example: a new listing to the MLS within the last two days... a condo listed at 800K, previously sold to current owner 07-15-2013 for 436K.
    Looking at similar units in the development, the only same size unit to close in the 800K list ballpark was a sale on 03-22-2005 for 875K.
    The only closed sales in the 800K ballpark over the last year (in the same development) were actually twice the square footage of this condo (4000+ square feet instead of 2184).
    Of course I know that just because it was listed for 800K doesn't mean it will sell for it (though I'm curious if/when such listings do sell, it could be a gauge when we are on shaky ground again given the 2005 comparable sale).

    That is just one example of what I have noticed too often lately to be isolated. So then this week when I noticed pricing jumps like this on realtors' own personal property listings, it made my ears stand up a little more. I've never been in a market where properties would list so much higher than they were sold for within the last two years while at the same time being absent of actual sold/closed comps reflecting demand. I've seen random soaring ask prices on FSBO properties in the past, but not listings made through realtors who traditionally don't need/want a property to just sit with their name on it for months on end.
     
    Last edited by a moderator: May 16, 2015

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