April ’16 Market Stats
How long will it take to sell my property?
Using absorption rate and market value to provide an estimate:
I don’t think you will find an agent willing to make a statement or promise, but there are some basic tools we can use to help our buyers get an idea here. These tools are two-fold. Meaning the information heavily relies on pricing your home at market value.
For example, if I use a formula 100% more than my suggested value… you get the idea. Other issues can play a role such as area, layout, home age, and in our area in particular, view.
So, assuming you list the home or property at market value, the below formula can help. However, it’s just a formula. Keep in mind that rural areas are far more difficult to value and understand. When valuing homes in areas with high population, track housing, high number of sales, etc. appraisals, CMA’s, and absorption rates are more accurate, or at least can be more valuable in these situations.
OK – let’s say the analysis is for a home as opposed to a lot. We need to take the total homes sold in the past 12 months, and divide by 12 to get the monthly absorption rate.
Then, we take the number of homes currently on the market, and divide by the monthly absorption.
The number we end up with is the Number of Month’s Worth of Supply on Market!
Contact me if you would like an analysis & absorption estimate.
Spring ’16 Market Update
Teton Valley, similar to many parts of the country is undergoing a period of substantial growth and movement. The trend isn’t just related to housing, but business development as well. There are many new business gracing our Valley, and Grand Targhee Resort has just announced they are replacing the Blackfoot chairlift in the summer of 2016.
Regarding housing, the trends continue: a substantial decrease in available properties, increased sales volume and lack of new listings; Teton Valley saw a nearly 10% increase in residential sales, with nearly half of all sales in the Victor area. Values are also creeping back up. By comparison, average sales price in the Valley was near $300,000. This number is just below the 2005 pricing prior to the very strong market in 2006 and 2007.
Building sites also progressed in price and in volume. The Valley has nearly doubled the vacant lot sales from 2014 to 2015. Building permits have also risen dramatically, now that home values are making building costs more enticing. All signs point to more rapid vacant land sales and construction following soon thereafter through 2016.
Looking forward to springtime of 2016, we anticipate continued growth in the market with an increase in construction. Demands for housing have driven the pricing for rentals and purchases higher than past years. Both spec building and owner building will once again command our market, but in the meantime, we continue to see steady, incremental price increases throughout the Valley.
March ’16 Market Stats
