For Sale vs Sold vs Pended
About the For Sale vs. Sold Report
- The For Sale numbers are the snapshot of the number of property for sale at the end of the month.
- The Pended numbers represent the number of properties that went into the "pending" status in that month.
- The New Listing numbers represent the number of properties that are new listed in a particular month.
- The Sold numbers represent the number of properties that are sold on a particular month.
What Does For Sale vs. Sold Report Do?
- It helps determine the trend of market supply and demand.
- It helps determine whether the current market is a seller or buyer market.
- It helps determine the minimum length of the listing period.
- It helps identify which price range the majority of the properties are in, within a given area.
- It helps focus on where the buyer's activities are and the market condition in those areas.
How to Use For Sale vs. Sold Report?
- Use with Average Price Per Sqft Report to set competitive listing price.
- Use current inventory level to determine market condition. The current inventory level is derived by dividing the monthly listing number by the monthly sold number which is shown in Months of Inventory graph. As a rule of thumb, an inventory level of less than three indicates a strong seller market while an inventory level greater than six indicates a buyer's market.
- A download trend of listing inventory and an upward trend of the number of properties sold indicates the seller is in a better negotiating position.
- An upward trend of listing inventory and a downward trend of the number of properties sold indicates the buyer is in a better negotiating position.
You Should Know
- The properties sold figures are derived from recorded transactions.
- Current monthly sold figures might be adjusted upward on the next month's report. This is to account for any closed transactions that are reported late.
Sold Average Price Per Square Foot
How do you calculate the Average Price per Sqft?
- The Average Price per Sqft is the average of sold price divided by square footage of sold listings.
What Does Average Price per Sqft. Report Do?
- It helps establish the market price for an average home.
- It helps determine if there is any change in property value for a specific area in a specific price range.
How to Use Average Price per Sqft. Report?
- Use the highest and lowest monthly average price per square foot on the chart to establish the most marketable price range in a specific area.
- If the home has a larger than normal lot, a special amenity, or is located in an area of social demand, the home price must be adjusted upward.
- Refer to the For Sale vs. Sold Report for the number of properties sold per month. If there are less than five properties sold per month for a specific price range, the average price per square foot might be skewed and is not as useful. In this case, an average of the fifteen month's or more figures should be used in setting the price.
You Should Know
- The garage area is not included in the square footage price calculation.
- Individual listings in the MLS system without square foot information are excluded in the average square foot price calculation.
- This report is not available where reporting of property square footage information is prohibited by the local MLS or if you selected Lot and/or Land property types.
Average Price For Sale and Sold
What Does Average Price For Sale & Sold Report Mean?
- The Average Price For Sale is the average of list price of the properties for sale in a particular month. The Average Price Sold is the average of sold price of the properties sold in a particular month. Displaying both the Average Price For Saleand Average Price Sold line charts in a graph portrays the relationship between the on and off market pricing.
What Does Average Price For Sale & Sold Report Do?
- It helps determine whether the market is a buyer or seller market. If the average listing price and average sold price are the closest, the area has the healthiest market.
- It helps identify where the softest market is and where the buyer can find the biggest price concessions.
- It helps determine if there is any change in property value for a specific area.
How to Use Average Price For Sale & Sold Report?
- Refer to the For Sale vs. Sold Report for the number of properties sold. If a very expensive or very cheap home has been sold, these statistics can be skewed up or down, and the trend line can fluctuate with less consistency.
- If the average sold price is below the average listing price, and falling, the market is moving toward a buyers' market. If the average sold price trend is up or above the average listing price, the market is moving toward a sellers' market.
Months of Inventory Based On Closed Sales
Buyer's market: more than 6 months of inventory based on closed sales
Seller's market: less than 3 months of inventory based on closed sales
Neutral market: 3 - 6 months of inventory based on closed sales