It often seems that there are numerous components that factor into market statistics, especially with real estate, and it is almost certain that while trying to keep up with the current rise in the real estate market, many eyes have blurred trying to figure them all out.
In a previous post the months of inventory component was discussed. This post will discuss two additional important elements that help comprise market statistics. One is average days on market (DOM) and the other is average sale price to list price (SP/LP).
| May 2014 | ||||
| # Active | # Sold | Avg SP/LP | Avg DOM | |
| $125,000 – $225,000 | 43 | 44 | 99 % | 93 |
| $225,100 – $325,000 | 188 | 62 | 99 % | 87 |
| $325,100 – $425,000 | 86 | 43 | 100 % | 114 |
| $425,100 – $525,000 | 61 | 19 | 99 % | 108 |
| $525,100 – $625,000 | 43 | 6 | 98 % | 55 |
| $625,100+ | 129 | 15 | 96 % | 222 |
| Total/Average | 550 | 189 | 99 % | 113 |
| June 2014 | ||||
| # Active | # Sold | Avg SP/LP | Avg DOM | |
| $125,000 – $225,000 | 42 | 54 | 99 % | 109 |
| $225,100 – $325,000 | 187 | 82 | 99 % | 104 |
| $325,100 – $425,000 | 99 | 43 | 99 % | 101 |
| $425,100 – $525,000 | 62 | 30 | 99 % | 109 |
| $525,100 – $625,000 | 41 | 10 | 99 % | 144 |
| $625,100+ | 136 | 10 | 97 % | 131 |
| Total/Average | 567 | 229 | 99 % | 116 |
| July 2014 | ||||
| # Active | # Sold | Avg SP/LP | Avg DOM | |
| $125,000 – $225,000 | 41 | 40 | 98 % | 84 |
| $225,100 – $325,000 | 203 | 84 | 99 % | 97 |
| $325,100 – $425,000 | 118 | 56 | 99 % | 90 |
| $425,100 – $525,000 | 79 | 25 | 99 % | 124 |
| $525,100 – $625,000 | 47 | 11 | 99 % | 90 |
| $625,100+ | 145 | 19 | 98 % | 130 |
| Total/Average | 633 | 235 | 99 % | 103 |
These statistics are for Bend, OR residential properties on <1 acre
Average days on market represents the number of days a property was actively listed before entering into a contract to sell. If a property sells quickly, then it will have a shorter average DOM. The longer the average DOM, the lesser price the property can command. The current 2014 numbers are in step with the national average DOM, which has seen this number in a downward trend in 2014. Properties are selling at a steady pace. There isn’t much lag in the market.
Average sale price to list price illustrates how closely the property sold to its asking price. This is an important statistic. If there is a great disparity between the sale price and the list price, there is an imbalance in the market. Sellers are asking an inappropriate amount and buyers are not willing to pay it. For May, June and July 2014 the average SP/LP was 99 percent. This means that the properties selling are closing at 99 percent of the asking price. Clearly buyers who want this location have been willing to pay the seller’s price to get the property they desire.
For May, June and July 2014 the total average DOM were 113 days, 116 days, and 103 days respectively, compared to last year’s numbers for the same time period of 150 days, 124 days, and 103 days respectively. For the same time period 2013/2014 comparison the average SP/LP has held steady at 99 percent.
So what does this really mean? This means that the local market is maintaining a close ratio between list prices and sale prices. Buyers are willing to pay to get the property. Also, the average DOM has generally decreased from 2013 to 2014. Properties are moving at an overall quicker pace. This is keeping the market active and healthy.
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