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Santa Ynez Valley Real Estate Sales 2010 vs 2011.
My analysis of the 2011 (year-to-date) Santa Ynez Valley real estate sales of single family homes indicated that we had total sales of $102.6 million involving 172 properties. Sales prices ranged from $129,900 (condo) to $2,285,000, with a median sales price of $508,500. The numbers for the same period in 2010 showed total sales of $112.5 million involving 155 properties. The median price in 2010 was $590,000. In short, we sold 11% more properties thus far this year, at a 13.8% lower price.
Listings Losing Much More Value Per Day.
One of the most striking findings in my market analysis is the average loss of value per day between the two years. To get at this, I calculate the total difference between the original listing prices and the final sales prices and divide this by the total number of days on the market. In other words, (original listing price-final sales price)/days on the market. In 2010 this number was $949.00 per day, which is fairly consistent with my prior years’ figures. However, in 2011 that number jumped to $2,000.00 per day. In plain English, the properties that sold this year dropped on average $2000.00 per day from the original listing price to the final sales price. This is twice as much of drop as had been in prior years.
There are two potential explanations for this: 1) the Sellers are more eager to sell and/or 2) the Buyers are more eager to buy. Given the nearly 14% drop in median sales prices in 2011, the more obvious explanation is #1: the Sellers are more eager to sell. While this is consistent with my experience, it is clear that the Sellers are still starting out with high hopes…nothing says this more clearly than in 2011 the final selling price on average was nearly 40% lower than the original listing price; in 2010 the final selling price on average was only 21% lower than the original listing price.
Before you rush out with an offer that is 40% below the asking price, please note that on average, the final sales price in 2011 was only 7% below the listing price at the time of the sale. On average, sold properties were on the market for about 6 months and endured price reductions through that period.