This Spring has been the most active real estate market in Woodlea Manor since 2010. With two settled sales and six pending sales, the demand for homes in the neighborhood is high. The historical average for demand at this time of year is only four pending sales. Unfortunately, this high demand has been met with historically high supply which has kept values lower than what I would have expected at the start of the year. There are eight active listings, which is significantly higher than the five year average of three listings at this time of year. Given the absorption rate, the neighborhood has five months of supply. This highlights the point that the Spring isn’t always the best time to sell a home. In January there was only 1 month of supply and clearly a seller’s market in Woodlea Manor.
To give you a better idea of how I calculate “months of supply” in Woodlea Manor, the first thing that I determine is the absorption rate. This is the number of homes that are typically sold in any given month during the year. I use data from the local MLS to calculate this number. Then I take the number of homes that are presently on the market and divide it by the absorption rate. The result is the “months of supply” What does this number mean? Take for instance if there are 6 homes on the market and the absorption rate is 3, then there are 3 montyhs of supply. It will take two months to sell all the inventory in the neighborhood.
There have been three homes on the market that have tested the $700,000 price point. None were successful. On the high end, homes are going “under contract” at the $675,000 price point. Considering the five year average of a 98% list to sales price ratio, I believe these homes will be selling in the $660,000 range.
A recent trend that I’ve started noticing in Woodlea Manor is the difficulty in selling a home without a finished basement. As an appraiser, I have typically valued a finished basement at around $30,000. An adjustment of closer of $40,000 may now be appropriate. In fact, a finished basement may become a feature that home buyers expect to see in any house for sale in Woodlea, such as four bedrooms and two and a half baths at a minimum.
A few months ago, I decided to take part in a program called Heroes Home Advantage. It’s a pledge that I make to my clients who are buying or selling a home, to return 25% of my commission for those that are serving our country or community. Those clients include present and former military service members, police officers, firemen, first responders, teachers and nurses. In addition to the 25% of my commission, I have assembled a team of lenders, mortgage brokers, home inspectors, appraisers, and settlement companies that have pledged to rebate an additional $1,500 at closing.
Last week my client, who just returned from Afghanistan, purchased her first home and received a check for $4,600 at closing. This week, I’m working with a couple, both in law enforcement, who will receive a check for over $6,000 based on their purchase price.
So if you are a “Hero,” or know of one, allow me to step up and help with your real estate needs.
If you are interested in learning more about what it’s like to live in Woodlea Manor or would like to see the homes that are currently on the market in Woodlea Manor please click here.