Average Price of Active Listings vs. Average Sold Price

In our market updates, we frequently show the MLS® Average Sale Price per city in Niagara and the Average List Price at time of sale. Depending on market conditions in the area, the percentage difference between the sale price and list price tends to hover between 95% and 97%.

Saleable listings, therefore, tend to fall between 3% and 5% of anticipated sale price. These are typically made up of:

  • Homes that are competitively listed to begin with to achieve best market price, and
  • Homes whose list prices have been reduced to promote a sale.

Yet here is what is most revealing

At the end of June 2013 we looked at the average list price of all active listings--listings not yet sold and compared it to the average sale price of homes sold. We noticed that the average price of active listings versus average sold price was markedly higher by a low of 15.6% in Welland to a high of 53.6% in Niagara-on-the-Lake. A look at each city:

 

To Endo June 2013 per City

Avg. Sold Price

Avg. List Price of Actives

Overage:

Active to Sold

Fort Erie

$198,003

$233,357

17.9%

Fonthill/Pelham

$355,300

$506,277

42.5%

Lincoln

$298,018

$443,587

48.8%

Niagara Falls

$220,640

$319,604

44.9%

NOL

$402,630

$618,472

53.6%

Port/Wainfleet

$195,544

$260,993

33.5%

St. Catharines

$223,685

$281,689

25.9%

Thorold

$223,752

$304,218

36.0%

Welland

$191,232

$221,033

15.6%

West Lincoln

$381,217

$477,585

25.3%

 

What can we attribute these large variances to? Here are some thoughts:

  • Not all sellers are motivated to sell. They just want to put it out there to see what happens, which, more often than not, is nothing,
  • Seller is looking to recoup costly improvements, a strategy again that rarely works,
  • Seller simply has an unrealistic opinion of value,
  • Salespeople can take over-priced listings with a “you never know” illusion, hoping the listing might bring in some potential buyer leads.
  • Seller owes more in mortgages, registered personal loans and judgments than the property is worth.
  • A higher supply of listings versus demand in the high end of the market range.
Eugene Pilato

Eugene Pilato

Broker of Record
CENTURY 21 Today Realty Ltd., Brokerage*
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