If you’re a numbers nerd (like me), then you’ll love this!
These stats are comprised of data found in our MLS system provided by the Waco Association of Realtors.
Wow, it’s been a crazy market the past several months (especially in Midway ISD). There seems to be a shortage of good listings. Great houses at good prices are jumping off the market right now, kind of reminiscent of 2007. With interest rates still holding low, buyers are coming out from the shadows to buy.
As for buyers, we’re getting a lot of calls from people who are “upgrading” their current homes. Heck, that’s what I’m doing myself! After 10 years in our current home (and interest rates low), my wife and I decided it’s time to go ahead and build the house we’ve been talking about building for the last 3 years. Soooo, if you happen to live in the Sunwest subdivision, I’ll be your new neighbor by Thanksgiving. You’re welcome for the warning 🙂
Anyway, back to the statistics. I think you’ll find these pretty interesting. I ran these numbers in January for the previous year (2012). It’s possible that a couple of homes didn’t get reported as sold by the time I ran these numbers, so the final tally may be just a little off (but not enough to make a real difference). These statistics are only based on RESIDENTIAL sales. They don’t include manufactured housing and only homes in McLennan County.
Total number of properties sold: 1,939
This represents a 14.4% increase in sales from the year before. As a matter of fact, only looking at sales in Midway ISD, the market is up OVER 27%! That’s a pretty huge increase. As of this writing, sales in Midway ISD are almost 7% higher than last year too!
Average sold price: $146,258
The average sold price for homes in 2011 was $140,048. A 4.4% increase
Average days on market: 143
Average days on market for 2011 was 137. I find this kind of odd though, that homes are sitting on the market almost a week longer than the year, even with the increase of sales. Those days on market also include the “in escrow” period. I have spoken to several lenders that are telling me that’s taking them a little longer to close a loan than previously. This could add to the longer days on market.
Expired/Withdrawn/Terminated to list percentage: 23.1%
This means that out of 100 listings, roughly 23 of them expired or was terminated (for various reasons). When a listing expires (home doesn’t sell), it’s because they were asking too much for it. This is a hard obstacle for some Realtors, getting a seller to understand the market and pricing the house at the right value. Many sellers think their house is worth a lot more than it really is. When we take a listing, we constantly watch the market and rely that information to our seller so we can make price adjustments if necessary.
Price reduction percentage: 41%
This means that 41% of the listing that sold last year, 41% required a price reduction. This simply means that the seller (or the agent) priced the house to0 high to begin with. Ideally, you want to price your house at the right price from the beginning. When the days on market is shorter, you’ll usually net more money from the sale. The longer a house sits on the market, typically the lower the price and the lower you net (especially if you factor in interest, taxes, repairs, etc… while your house is on the market).
Average sold price to original price: 92.3%
This means that if someone was asking $100,000 for their, on average, they would sell it for $92,300. I caution you to take this statistic with a grain of salt. It doesn’t mean you need to price your house 8% higher! There are some pretty large homes that required price reduction amounts in excess of $100,000. This number is only looking sold to original price. We didn’t factor in current asking price! That’s the next stat.
Average sold price to current asking price: 95.9%
This means that we’re NOT looking at the original price at all. JUST the current asking price. So, on average, a $100,000 asking price will sell for $95,900. Once again, I caution to use this stat to price your house too high. You’d be surprised at how many homes (when priced right) sell for full asking price or real close to asking price. The key is to get the price right from the start (well, that’s one “key”… other is appearance, marketing, photography, etc…)
Also, you’ll find it interesting that the average days on market for homes that required a price reduction was 211. The average days on market for homes that did NOT require a price reduction was only 90! That’s a HUGE difference.
Average sold price by school district:
- Waco: $101,127
- Midway: $187,445
- China Spring: $182,834
- Connally: $119,818
- Lorena: $200,062
- Robinson: $155,156
Market share by school district:
- Midway: 34%
- Waco: 32.4%
- China Spring: 9.4%
- Connally: 3.6%
- Lorena: 2.7%
- Robinson: 5.1%
I find the market share by school district interesting! Waco has the largest school district, but yet Midway ISD in 2012 had the biggest share of the market! You’ll notice that the #3 spot is held by China Spring ISD, but it’s a “distance third”. You can see where the buying frenzy is happening.
So is it a seller’s market or a buyer’s market?
First we have to define what a buyer’s and seller’s market actually is! Conventional wisdom in the real estate industry states that it’s a seller’s market when there is less than 5 or less months of inventory on the market. A “balanced” market is between 5 and 7 months worth of inventory and a buyer’s market is when there is more than 7 months of inventory for sale.
You may find this interesting; as of this writing, for McLennan County, we have a 6.39 month supply of inventory on the market. This would mean it’s a “balanced” market. If you break it down a further and just look at Midway ISD, we have a 4.36 month supply of inventor on the market, which would indicate a seller’s market!
So is it a seller’s market or buyer’s market? I hate to say it, but it’s both! It just depends on where you’re looking to buy.
If you’d like specific statistics regarding the Waco real estate market, feel free to send me an email or give me a call! I’ll be glad to run any numbers you’d like! Days on market for 3 bedrooms vs. 4 bedrooms, homes with swimming pools, by age, square footage range or whatever!