Here is a quick look at the Single Family (S/F) local real estate market report as of Sept. 1, 2016. All data is from the Western Kentucky Regional MLS database as of 9-2-2016.
August 30, 2016 marked the intersection of the number of S/F sales in Trigg county this year and the number of same type sales in Trigg County last year. Prior to the end of August, more S/F homes were sold this year than last. However, last Wednesday marked the date when the numbers (105 unit sold) were the same. This is a reflection of the declining market in Trigg county which started around June of this year. Prior to that month, S/F sales were ahead of last years by as much as 20%. Since June, however, unit sales by comparison have been dropping until the last of August when unit sales, year to year, were the same. What is next?
We can look at the Pending sales status to see what is going to happen in the next 4 to 6 weeks. Because Pending turns into Sold, the Pending number gives us a glimpse into the future. And the future looks as though the market will continue to decline. There are currently 17 homes in the pending status, while past figures have been 21, 24, and 28 in past reports. Fewer Pendings will translate into fewer Solds and by that indicator we have a declining market.
Other indicators exist. The Home Absorption rate is such an indicator. Marking how long it would take to sell all the existing homes on the market, a neutral market is usually recognized as 4 to 6 month absorption rate. Less than that is considered a Sellers Market, more than that is considered at Buyers market. Current absorption rate for Trigg county S/F homes is 12 months. It was as low as 9 months in May of this year. Sellers will continue to control the market. Incidently, the average Sale Price to List Price for sold units in Trigg county to date has been 92.65% while for Western Kentucky as a whole the percentage has been 94.55%. This indicates that listing prices in Trigg County are 'softer' than on average in the rest of our MLS.
One additional item of interest would be the inventory or number of the S/F houses in the county that are currently on the market. That number sets at 142 and compares to 147 last month. Inventory seems to be stable at this time, although certainly below the 155 to 165 figures we have seen in years past.
So, are there still Buyers out there? - Yes. Is it going to become more difficult to sell a house? Statistically, Yes. How can Sellers react? Increase the value of your listing to make it more attractive to Buyers. Think about first impressions and how your home looks. Make sure the listing photos are clear, lighted and each tells a story about your house. Pictures are better than words, videos are better than pictures. Also, Sellers should consider including a Home Warranty, or having a Home Inspection done and fixing all the short comings. These items increase the perceived value of your home.