We Are in a Buyers Market!
Source: Trendgraphix Facts and Trends
While this may have been obvious to you for some time now, there are many indications of a "Buyers Market" that give Realtors clues as to pricing trends which help us to determine negotiating tactics. Quite often, Sellers need to Sell, but Buyers have the luxury of waiting for a "deal". On the other hand, some Sellers do not have a set time frame for making a move or downsizing, giving them the luxury of picking when they choose to put their home on the market. All of these variables are important in terms of evaluating your property's value and developing a marketing strategy to Sell your home.
Months of Inventory
In November, 2008 the months of inventory in Menlo Park were 6.7, while back in May, 2008 it was just 2.5. In Atherton the months of inventory in November, 2008 were 5.5 as opposed to 3.5 in May, 2008. The more inventory, the better, for the perspective Buyer. Conversely, if you need to make a quick Sale to facilitate a move, or your new home purchase is contingent upon the Sale of your previous residence, you may need to price your property more aggressively.
Days on Market
In November, 2008 the average home in Menlo Park was on the market for 52 days vs. just 27 days in May, 2008. In Atherton the average home was on the market for 36 days while in May, 2008 it was on the market just 19 days.
Average Price For Sale vs. Sold
Menlo Park homes in May, 2008 were selling at their asking price, while by November, 2008 they were selling significantly below the asking price. In Atherton the trend was for the homes to Sell below their asking price for the majority of the last 15 months.