We’ve had another brisk month of sales within broader Capitol Hill, but I’m finding more stability than drama, with selling prices more in line with list prices and many more homes selling at or just below list price than this time last year.
In April, 63 homes went to settlement, with more than two-thirds of them under contract within 14 days on the market. But here’s what I find interesting — only half of the listings that settled in April sold above list price, and of those, only about a third sold at more than 2 percent above list price.
The remaining 31 homes? Only eight sold at list price. That means that 23 sold below list, averaging about 3 percent under asking, but six sold in excess of 5 percent below list, and a few at 10 percent below list price.
This probably sounds a little “Middle America” to many Hill-ites, especially to newcomers who’ve seen nothing but a “blink-of-an-eye” market for the past five years.
These numbers, as units sold, aren’t far off from April 2014, except that now the difference between list and sale price is much larger on those properties selling above list, and much smaller on those selling below list.
In April 2014, 61 homes went to settlement, with all but 14 under contract within two weeks on the market. Less than half (26) of those listings that went to settlement sold above list price, but of those homes, 10 sold at more than 10 percent above list price. So we see a big shift when comparing April 2014 to April 2015.
The remaining 35 homes? Fourteen sold at list price. That means that 17 homes sold below list last April. But here’s what’s remarkable — all but a few of last April’s below-list sales did more than scratch the price-tag. Over two-thirds sold at less than 2 percent below the asking price.
So, April 2014 had bigger escalations and smaller price drops than this past April, almost the reverse.
While judging the market from a list price/sale price perspective is only one of many methods to gauge trends in the market, in this case, April 2014 vs. April 2015, a reduction in the escalation caps as a percentage above list price can be seen, if not in home values, then perhaps just the drama factor. Although in general, one can see that the market is pushing back a bit, as sellers list their homes price in line with the most recent “record-breaker” on their block.
It’s a natural thing.
The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of HillNow.com.