July 29, 2014 by Bill Stuart
Neighborhood House Sales Increase 38.9%
This year there have been 25 house sales in Cleveland Park, compared to only 18 during the same period in 2013. The median sales price jumped from $1,405,000 to $1,575,000. The length of time to sell a property dropped from 16 to just 6 days!
Of the 18 properties that have closed so far in 2014, every house listed under $1,500,000 sold for full price or more! No listing over $1,500,000 sold for over full price.
Ten houses sold for full price or more and all of those sold within 11 days (3 days on average). Of the 7 houses that are currently under contract, 4 sold within a week, and the other 3 were reduced and sold within two weeks of being “right-priced.”
So let’s take a look at the power of “Pin-Point” pricing.
- In April, 3514 Rodman Street listed for $1,350,000 and sold for $1,425,000.
- In May, 2926 Newark Street listed for $1,385,000 and sold for $1,430,000.
- In June, 3409 Ordway Street listed for $1,299,000 and sold for $1,375,000.
Each property sold for considerably more than full price in 4 days or less!
Are you kidding me…98¢ pricing makes a difference in million dollar sales?
See what happens if a seller changes price range?
- 3238 Rodman Street listed for 49 days at $1,329,000 sold within 11 days of price change to $1,149,000.
- 3101 34th Street listed for 15 days at $1,349,000 sold within 9 days of price change to $1,249,000.
- 3312 Lowell Street listed for 33 days at $$2,595,000 sold within 14 days of price change to $2,489,000.
Yes, price range matters!
And what happens to sellers who wait?
- 3305 39th Street listed for $1,765,000 waited 38 days to get $1,676,000, only 95.0% of list price.
- 3600 Macomb Street listed for $5,500,000 waited 45 days to get $4,980,000, only 90.5% of list price.
Houses that sold within 11 days averaged 101.5% of list price!
What are the consequences of waiting too long to “right” price?
- 3715 Idaho Avenue listed for $2,950,000 lingered on the market 119 days before price change to $2,650,000 and sale 43 days later for $2,525,000, only 85.6% of original price.
- 3201 36th Street listed for $3,495,000 languished on the market 210 days before price change to $3,295,000 and sale 4 days later for $3,025,000, only 86.6% of original price.
What’s the best time of year to sell?
In February, while the rest of the market was swallowed by the “Polar Vortex,” six sellers successfully sold homes in Cleveland Park!
There were only 10 sales during the thirteen weeks of what is traditionally considered the “hot” Spring market. In the first five weeks of the Summer “doldrums,” already there have been 7 sales!
So what do you make of these counter-intuitive trends?
The availability of “right-priced” homes in Cleveland Park seems to be far more important than the time of year.
About the author: Bill Stuart is Marjorie’s husband and business partner. He has over 40 years experience in the local real estate market. Bill is a regular contributor to the Federal Reserve Board’s Beige Book, providing insights on trends in the Washington, D.C. market.