We recently posted about the home prices for November in the Hollywood Riviera. Two key metrics we’ve been following is whether homes are selling for under or over the list prices and also how long homes are sitting on the market.
Decisions can be made from these numbers….what’s the market doing, where’s it heading….is it a buyer’s market or seller’s market?
Sometimes one or two sales in a month can dramatically skew these number’s however, and don’t paint an accurate picture of market conditions.
The Hollywood Riviera in November was a perfect example. Unlike recent months the average “sold” prices were actually lower than the “list” price. Average days on market was also 70 for the homes that sold which is well higher than previous months. Both potentially indicate that the market may be slowing.
The reality, however, is that one sale completely changed the numbers. The oceanfront home at 425 Paseo De La Playa finally sold after 667 days on the market. The home was listed at $12,000,000 and closed at $6,900,000.
So overall for November the average “list” price was $2,614,333 with the average “sold” price at $2,211,313. That’s a big change from the past 6 months which generally saw homes selling for more than the asking price every month.
If you eliminate that one sale it changes the outlook considerably. For the other 11 home sales of the month the average “list” price was $1,761,091 with the average “sold” price at $1,785,068 meaning homes sold well over list price.
Eliminate the one sale and average goes from 70 to only 15 days on market. For those looking at the overall numbers they might have been hoping the market was shifting to benefit buyers but unfortunately the reality is a bit different and sometimes you need to dig a bit deeper to see what is really happening in your real estate market.