Another important statistic that reflects the strength of a real estate market and can tell a lot about its future direction is "Average Days On Market". The average days on market statistic represents the average number of days a property is listed before receiving an acceptable offer to purchase it.
Year - Average Days on Market - Sale Price as a Percent of Listing Price
1999 ~ 327 ~ 103.90%
2000 ~ 276 ~ 104.89%
2001 ~ 172 ~ 97.40%
2002 ~ 130 ~ 94.91%
2003 ~ 159 ~ 94.76%
2004 ~ 149 ~ 94.84%
2005 ~ 157 ~ 95.28%
2006 ~ 158 ~ 93.66%
2007 ~ 186 ~ 93.61%
The average days on market statistic very accurately tracked the changes in our Columbia County real estate market. In 1999 and 2000 it took approximately 10 months to sell a residential property. In 2001 as demand strengthened properties began to sell much more quickly. During the peak of the "seller's market" in 2002-2005 this statistic fell to just over 5 months on the market. In 2006 this statistic levelled on and began moving upward in 2007.
It is intuitively easy to see that properties sell more quickly in a "seller's" market and more slowly in a "buyer's market". The Columbia County real estate market is certainly not a "buyer's" market yet. In fact, I would say we have reverted back to the "neutral market" conditions that existed in 1999 and 2000.
Another interesting statistic is Sale Price as a Percent of List Price. This stat is included in the third column above. I find it interesting and telling that from 2001 through 2007 this statistic remained relatively unchanged, even as we went from a "neutral market" to a "seller's market" and back to a "neutral market". I believe this demonstrates an important point about selling real estate in any type of market. That point is: the average house will sell when it's asking price is listed within ten percent of the eventual sale price, almost without regard for changing market conditions.
John A. Avenia, Associate Broker
Beach & Bartolo, Realtors, Inc.
www.columbiacountyrealestate.org
john@columbiacountyrealestate.org
(800) 290-4235
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