Paradise Valley Weekly 267th Edition - June 6, 2015
Looking at this week's closings, there's valuable information lurking beneath the averages. The average house in Paradise Valley that closed last week was on market 91 days. That's pretty healthy considering that PV has the most expensive real estate in Arizona.
Here's where it really get's interesting: half of the homes were on market 40 days or less. The average of these homes was 28 days on market.
The other half averaged 156 days on market. That's over 5.5 times as long.
The homes that sold quickly got 91% of their asking price on average -- versus just 83% for the homes that took 5.5 times as long to sell.
This tells us loud and clear that the market is efficient, and people who overprice homes do so at their peril. The market will wait out the sellers who are hoping for the greater fool to come along.
There are really two markets in our small town:
1. A market of high quality well priced homes that move quickly, where it's a sellers market.
2. A market of overpriced homes that become stale, and have to fight for buyers attention.
Whether your contemplating a purchase or a sale, it's important to make a decision about which market you plan to participate. Your strategy and expectations should be very different, depending upon which one you choose.
Even though we are a fairly small town of less than 14,000 people our real estate dynamics are more complicated than the averages will ever show. That's why this newsletter has focused on Paradise Valley for 5 years running.
If you'd like to talk in more detail about what's happening in the market, please reply to this email or call me at (480) 442-7325. As long time readers and clients know, there's never any pressure to take action, I'm very patient and methodical. We'll keep at it until we find the ideal situation for your family.
Also note that interesting deals happen off the MLS. If you'd like to know about them, please click here.
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