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January 6, 2012

What would-be sellers are asking vs. what buyers are paying

Here's what the people trying to sell homes in the Baltimore region were asking in the month of November the past few years, and how that compared with what buyers paid for the homes that actually changed hands:

 

Ask%20vs%20sales.png

Sources: Department of Numbers, Metropolitan Regional Information Systems' RealEstate Business Intelligence

 

It's interesting to see how different the median asking price and median selling price were in 2006 and how the gap has shrunk since then.

Incidentally, the asking price of the typical home for sale vs. the price of the typical home sold isn't the same as what a typical seller gets compared what he or she asked for. That is decidedly not closer together now than it was in 2006.

RBI tracks the average original list price of homes that ultimately sell. The discount was 5 percent in November 2006 and 11 percent this past November, RBI says. 

What gives? Two things, probably.

The asking prices on the graph above -- for homes actively for sale -- are a snapshot at the time rather than whatever those homes on the market were originally listed at.

And perhaps more importantly, would-be sellers and buyers nowadays have had years to get accustomed to the idea that it's a down market and set their expectations accordingly. In late 2006, that was still a new thought. Sales activity was dropping but prices weren't; they just weren't rising at the fast clip of a year or two earlier.

Posted by Jamie Smith Hopkins at 6:00 AM | | Comments (1)
Categories: Housing stats
        

Comments

This graph is extremely useful, and I am so glad to see the numbers in black and white, or blue in red in this case! For about two years we have been noticing that less properties were selling because of the asking prices being too high. However in recent months, it is very noticeable how when asking prices are more in line with what properties are selling for in that given neighborhood, Real Estate moves.

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About Jamie Smith Hopkins
Jamie Smith Hopkins, a Baltimore Sun reporter since 1999, writes about the regional economy. Her reporting on the housing market has won national and local awards. Hopkins is a Columbia native and has lived in Maryland all her life, save for 10 months spent covering schools in Ames, Iowa.
She trained to become a wonk by spending large chunks of time as a geek and an insufferable know-it-all.
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