It's a question I am asked quite often, as all agents are. "How's the real estate market?" Well, it's a simple question...but it's a complicated answer.
You see, in "real estate" nothing is simple. Everyone is unique, and thus their individual needs are unique. People see headlines every day, but they sometimes fail to keep in mind that those headlines are most often national or at best, regional averages. They are VERY vague. Let me explain a bit:
I guess what I'm trying to say is that one size definitely does NOT fit all in real estate. Let's look at our local market here in Hot Springs, Arkansas for a small rural-ish market set of data. These figures come directly from our Hot Springs Board of Realtors'® Multiple Listings Service® (There's a whole other blog post on the term, "Multiple Listing Service® coming).
"So what's the average home price in the Hot Springs MLS®?" Glad you asked! Today, as of 7:50 am on January10, 2018, that average home price sits at (fanfare please...) $289,151. That's what you asked. Now what does that include??? Now THERE"S the question!! Here are some factors involved in that number"
- The number includes all the current listings reported as "active", which also includes listings that have returned to the market, new listings, old listings, and listings that are currently active but are under contract (they have an accepted offer on them and are waiting for a contingency in the contract to be met...
- The number includes homes listed by every member of the Board, and some members take listings that are fairly far afield, as in other cities in the state...we are licensed to sell real estate in the STATE of Arkansas, not just here close by.
- The number does not truly represent the "average" home (is there really one of those??). "Average", when used in language is a totally subjective term. In mathematics, it is very specific (see the worlds colliding here?). The number $289,151 average includes homes that are of all shapes and sizes, all neighborhoods, all school districts, all bedroom and bath combinations, all lot sizes, all acreages, whether they are in good repair or not, whether they are on the WATERFRONT or not (a BIG factor here), and whether they may be a stick built home, a condo, townhome, modular or manufactured home, teeny or a mansion!!
So you see where this is going, right???!! It lies in the realm of "WHAT IS AVERAGE TO YOU??"
Being that I don't know you...yet (I'd love to be your agent though). Permit me to research "an average". I am going to filter the data more tightly. We will look in only Garland County, 3 bedroom, 2 bath homes, and between 1700 and 1900 square feet...stick built homes and NOT on a waterfront. We will leave the approximate date built out for now. Let's see what we get. Oh... there were 864 listings before, ranging from $6,990 to $4,950,000)
With the new set of data entered, here is where we stand for a more average, average...
Our NEW average listing price with a much narrower search comes out to $173,894, based on 17 homes (yes, 17) with a range from $109,900 to $252,900. Quite a change, eh?
Just for kicks, let's broaden the search for all stick built homes in Garland County (NOT waterfront), the "average" changes to $242,783 and it opens up 381 total homes (but there are 24 homes in that group that are over $500K and go up to $1.9M)
I hope this sheds a bit of light for you. I doubt it helped, if you are wanting to know the answer to that question, "How's the market?" It is a multi-faceted question with several answers. The next post will be more in the line of Different SALES from 2017 vs. 2016... which takes a look at where we are heading.
ta-ta for now.but feel free to do your own searching on this website and poke around the blog, the pages, etc. You do not have to register. It is more of a service to the public than a source of business for me. NATURALLY, I'd love to help you buy or sell your house and represent you in the transaction, but this site will stay free to use and it is a no pressure environment (like me)
Have a wonderful day.