Have you heard the real estate market is hotter than ever? It is but let me set the record straight on Dover Home Values. We measure demand in a market by the average days on market for sold properties. We can see that demand grew as days on market went from 72 in the first half of 2015 to 59 in the first half of this year. Two weeks doesn’t seem very significant but when compared over the years, we would consider demand to be very steady. However, the number of properties available can significantly alter the face of the market. We can see that there were fewer new listings in 2016 and 2017 which accelerated asking prices because the level of inventory was low compared to demand. Real estate is probably one of the purest examples of the laws of supply and demand. If demand is high and supply is low, prices will escalate. Asking prices in Dover have reacted appropriately. We are seeing prices rise so quickly, we can hardly wrap our minds around it. Some Dover sellers have seen incredible gains. Inventory has improved this year slightly but has already had it’s affect on prices. Search the inventory here => Dover Homes For Sale
Median Sales Price vs Average Sales Price
Median sales price is a better indicator of price tends because aveage sales price can be artificially skewed by a transaction with an extremely low or extremely high sales price. Meidan sales price is in the middle of all the sales price data with half of all the sales having a lower sales price and half above. Median sales price rides the tide when it goes up or when it goes down. Median sales price is up 11.5% from 2015 and a whopping 23% over 2016. As inventory lagged, we saw asking prices rise. There was a difference of about $10,000 from asking price to selling price last year but now we are seeing median sales prices equal asking prices. This means that sellers are getting their asking price and as buyers compete for homes, sometimes sellers get more than they were asking. Here’s a look at the comparitive asking vs sales price over the last month. Dover => Solds
The Future Of Dover Home Values
Mortgage rates are going up and there will be attrition from the market of buyers who will see their purchase power eroded by higher rates. A 1/4 of one percent (+.25%) rise in the rate could mean the difference for some buyers of buying a home with a garage vs one without. As rates rise and buyers scale back or drop out, sellers will have to come to grips with a smaller overall demand in the market. It will be extremely important for sellers to work with a knowledgeable agent who can help them arrive at a good asking price when coming to the market. We have seen more price reductions by sellers as of late as inventory improves. Will Dover home values crash? ….heck no, but this may be a market correction that many buyers would say is needed. Dover is a vibrant community offering quality education, great jobs, and lots of fun things to do and see. Dover home values will continue to rise but not as fast as they have over the last several months. I believe values will level off soon but will commonly grow at a rate of 3-5% a year and present good investment opportunites for many years to come.
This report brought to you by Marty Patrizi
Marty is a Realtor at The Bean Group and has been helping folks buy, sell, build, and renovate property since 1988. His construction experience is his competitive advantage. Marty represents his clients with complete confidentiality and compassion. He can be reached at 603-781-4099 or email email@example.com for help acheiving your real estate goals.
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