The Halifax Real Estate Blog Weekly Market Report and Statistics Update by Jeremiah Wallace (Every Thursday)
Halifax (HRM) Residential Market Statistic Update For Week of September 26th to October 3rd 2013
(Previous weeks numbers in brackets)
*Last year this week
New Listings: 445 (423, 441, 498, 410) *415
Sold: 108 (110, 88, 125, 105) *125
Sale To List Ratio: 24% (26%, 20%, 25%, 26%) *30%
Expired/Cancelled/Withdrawn: 413 (137, 138, 124, 227) *85
Total Active Halifax/Dartmouth Inventory: 5,276 (5,465, 5,473, 5,414, 5,335)
Active Single Family Home: 3,547 (3,623, 3,617, 3,553, 3,499) *3,052
Average Single Family Home List Price: $289,210 ($283,446, $278,083, $293,593, $313,101) *273k
Average Single Family Home Selling Price: $279,744 ($272,234, $269,851, $282,520, $302,438) *268k
Average Days On Market Single Family Home: 105 (105, 100, 92, 108) *101
Active Condos: 405 (419, 403, 405, 399) *303
Average Condo Listing Price: $291,476 ($289,416, $247,566, $244,546, $264,208) *294k
Average Condo Selling Price: $283,476 ($281,333, $237,544, $211,000, $250,541) *285k
Average Days On Market Condos: 120 (80, 131, 132, 67) *63
Halifax/Dartmouth Absorption Rate (weeks): 69 (58, 51, 46, 45) *39
It's nasty out there! Finally, the major areas of inventory have had significant reduction. Single family homes reduced by nearly 200 units, while the expired bucket made the largest impact. There was a large amount of inventory added this week, but I would think that some, not all, of the expired listings came back to market fudging the stats a bit. Values in all areas remain high, and days on market plateaued. The sales to list ratio wasn't unusual this week given the amount of sales that happened, but that didn't stop the 10 week gain on the absorption rate. Hopefully the warmer weather will extend our selling season, in hopes of going into the new year on a positive note.
Last week I mentioned I would discuss the elephant in the room when talking with potential listing agents, commission. Have you ever found yourself on the other end of a listing presentation, listening intently, waiting for the punchline? What's that saying from the 80's, "don't bore us, get to the chorus". I feel that quite often when discussing potentially listing and marketing the property, so I address it firstly. I won't go into too much depth on this topic because there are many aspects and angles that could be debated, and I don't want to be bombarded by the different agency's that have different models. I will say that there are many choices out there which vary from a flat fee to five, sometimes six percent (half to each participating brokerage). And I'm not going to touch on FSBO's (for sale by owners). The factor I wanted to address is how. or if it effects the sale of a property. In my opinion, it absolutely does.
Real estate agents, much like any 100% commission based sales force, are driven by results. Much like any other profession, you put in hard work, long hours, dedication and expect to be rewarded for your efforts. Difference with commission based professions is that you never truly know when your next pay check is coming, and specifically with real estate professionals (mortgage brokers, agents, lawyers, inspectors etc) can be influenced by several outside factors, home sales being the biggest one. So when you are faced with a down market, sales become less frequent and harder to source. So what does all of that mean to the average seller?
The vast majority of buyers see the value in having their own buyer representative, whether referred from a friend or relative, researched, or simply chose a bigger name in the industry. Someone to walk through the offer process with, ask questions, show them around, and the great part is...it's free! The working relationship can be as short as a few weeks, and can sometimes go for years. Maybe there was a couple properties that where viewed together before the offer, and maybe it was 100's (yes, that has happened). The longer the relationship = more time invested. Now let me paint a picture. Agent Smith (I am not agent smith, just to be clear) has worked diligently with new home buyer's Mr and Mrs Buyerz. Agent Smith has viewed over 30 properties, mentored and educated them, spent countless hours of research for each property, setting up appointments and showing the Buyerz around. The offer day has arrived and Mr and Mrs buyer have it narrowed down to 2 properties. Both identical in size and features and they cannot decide which one to offer on, so they look to agent Smith for guidance. Agent Smith is new to the industry and cannot wait to put forward the offer, and be on the way to being rewarded for the time and effort invested. Before responding to the Buyerz, agent Smith reviews the materials on the property in hopes of finding something to aide the Buyerz in their decision. Upon review, agent Smith notices that there are two vastly different offering commissions from the sellers of the property.
Do commissions really make a difference? Before I chime in with my reasons that commission could potentially make or break a sale, I thought I would get your opinion on possible outcomes, or expectations in this scenario.
Hopefully, with enough participation, we can keep the conversation going next week!
October is Pit Bull awareness month. I thought I would take the opportunity to pass along facts about the breed this week, starting with the fact that "Pit bull" is not a breed.
The “Pit Bull” isn’t an actual breed at all, but a slang term that current North American culture uses to describe any dog that has a big head, cropped ears, brindle coat or eye patch usually a large/stocky dog. The true breeds most commonly labeled as Pit Bulls are: American Pitbull Terrier, American Staffordshire Terrier and Staffordshire Bull Terrier. Unfortunately the Pit Bull has become popular with the gang-subculture who have exploited this breed by forcing them into dog fighting rings, and breeding and training them to be aggressive. Today, many people automatically associate the Pit Bull with crime, gangs, and poverty when, in fact, most Pit Bulls are owned by your average upstanding citizens. With the explosion of Pit Bull breeders, thousands of Pit Bulls are ending up in shelters across the country, topping the list of the most euthanized pet. The fact is, millions of Pit Bulls are living peacefully in homes throughout the country.
Are you familiar with ViewPoint Realty? How about the ViewPoint real estate map? Its a great tool for all your real estate research needs and when you are ready to buy or sell, its the competitive edge over your competition!
Have a question about the Halifax Real Estate market? Thinking this might be the time to purchase or list your property? I can provide you with a complimentary comparative market analysis or you can Contact me to advise you on your best plan of action for your real estate transaction and get the most advanced real estate system working for you. Feel free to leave a public comment or question below. Follow me on Twitter to keep up to the minute with all things Halifax real estate @HalifaxRealEst and friend me on Facebook and Google+ :) Please note that these opinions and comments are solely mine and mine alone.
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Jeremiah Wallace, CD
Jeremiah has been involved with many aspects of the Real Estate industry for over twelve years. This includes construction, residential renovations, interior design, and investing in various income generating property products..
Photo's by Jeremiah