Sequim real estate prices are down as are prices throughout the country, but how much are Sequim real estate selling prices as a percentage of the original listing prices? Looking at the most recent data for homes sold during the month of July, 2011, the results are interesting.
Sequim Real Estate Prices
Sequim Real Estate Prices Compared
After you’ve enlarged this chart by clicking on it, or by going to Sequim Real Estate Prices, you’ll see we’ve had 17 homes sold in Sequim thus far in July. The blue bar represents the original listing price, and the adjacent red bar represents the final selling price of the same home. This data is taken from the Olympic Listing Service.
Some homes obviously have sold for substantially less than their original listing price, but others less so. The average Sequim real estate selling price to original listing price is 88%. In plain language, Sequim homes are selling for 88% of their original listing price.
Sequim Real Estate Prices and Overpricing
The reason I keep using “original listing price,” as opposed to just “listing price,” is because many of these homes had multiple price reductions until they finally sold. The final selling price may be 98% of the listed price, but that’s not a very useful statistic. The more useful statistic is the original listing price, because this tells us something about homes that have been overpriced, and when you add another statistical measure, days on market (DOM), you have valuable information for analysis. A home that has been on the market for 700 days, has had three major price reductions, and finally sells for 65% of it’s original listing price was most likely grossly overpriced in the beginning. Overpricing means lost valuable market time, and lost buyers.
Sequim real estate prices are down but this chart tells a valuable story.
Last Updated on September 4, 2011 by Chuck Marunde
I think it would be interesting to see selling price and listing price compared to county tax assessment. I’ll bet the county number is closer to actual market value than listing price.
That would be an interesting comparison Dan. I’ll work on that. Thanks.
Good points on real estate prices. Appreciate your blog.