Spring is typically the busiest time of the year in the I’On real estate market and this year is no exception. Since March 1st, the I’On market has been extremely active, both in terms of new listings coming on the market and homes that are going under contract. There have been 25 homes come on the market in I’On during this period. and 14 homes have gone under contract. Currently, we have 46 I’On homes on the market, ranging in price from $479,000 to $2M.
Since March 1st….
- 25 I’On homes have come on the market
- 4 of them have already gone under contract
- 10 additional homes have gone under contract (for a total of 14)
- 6 homes have closed at an average selling price of $250/square foot (Click here to see all recent I’On home sales)
There are currently 21 I’On homes under contract, pending closing.
I’On Inventory Continues to Provide a “True Picture” of the Market…
As most of you know, I use “months of inventory” as a barometer for what is happening in the I’On real estate market. In order to factor in the seasonality of our market, I determine the number of homes sold in various price ranges during the last 12 months. Based on that “run rate” of sales, I compare it to the current inventory and then calculate the months of inventory by price range. Generally, 6 months of inventory represents a balanced real estate market, one that doesn’t significantly give the advantage to either the buyer or seller. In order to really analyze a market, it is important to break it down into meaningful components.
Below is the current “months of inventory” in I’On by price range. Assuming a selling rate equal to the last 12 months of sales activity, this is how many months it will take to deplete the current inventory…..
What is striking when looking at this chart is the difference between the various price ranges in our neighborhood, particularly the months of inventory for homes price above $1M. There have been A LOT of $1M+ I’On homes come on the market in recent months, but the pace of sales has not picked up to match the new inventory! For example, on average, only one home priced above $1M will sell in the next 2.4 months!! If you are trying to sell a home in this price range, I encourage you to talk with your realtor about how to make sure your home is the one that sells!!
To put all of the price ranges in perspective, below is what I’On home sellers can expect in terms of the average time required to sell a home (based on the current inventory and the last 12 months of sales data).
Average length of time required to sell by price range….
- Below $500,000 – one of these homes will sell every .83 months (less than a month)
- $500,000 to $750,000 – 2 of these homes will sell per month
- $750,000 to $1M – 1 of these homes will sell per month
- Above $1M – 1 home will sell every 2.4 months
- Overall – 4 homes will sell per month
The key question sellers need to ask is…..“How do I make sure my house will sell in the next 30-60 days during the peak season?” Keep in mind that the spring and early summer season is the best opportunity to sell as there are many more buyers in the market during this time of year. It is likely that more homes will sell per month than the averages stated above, but as we move into the late summer and into the fall, these numbers will likely drop off to a pace that is significantly slower. So NOW is the best time to move your house if you are an I’On home seller! In order to do so, it will be imperative for you to have your home in top notch condition and priced “to sell”.
I’On Homes “Priced to Sell” are Selling!!
What are I’On home sellers asking for their homes and what are they getting? It is very interesting to compare pricing for the I’On homes for sale (not under contract) with those that are under contract, particularly in terms of asking price/square foot. For example, the average asking price per square foot for the homes that are on the market is $280. For the 21 homes that are under contract, the average asking price per square foot is $244. To clarify, this is not the selling price per square foot (as we won’t know that until they close). This is the asking price per square foot. This is a clear indicator that I’On homes priced more aggressively are generally the ones getting sold in this market….across all price ranges. There are more buyers, but they are all still looking for value when making their purchase decisions.
So…..Is the I’On Real Estate Market Improving?
Everyone I talk to lately tells me that they “hear the market is getting better”. There is no doubt that it is…..but what does “better” mean? It likely means different things to different people!! In terms of activity, there is clearly more buying activity than we have seen in a long time. This is helping to bring the “months of inventory” down in virtually every price range, which is the first (and most important) step in returning to a more balanced market. In terms of pricing, there has been stabilization in the last year and a half, but not much in the way of price appreciation. This will not occur until more progress is made on depleting the inventory, particularly in the higher price ranges. So, yes….the market is improving, but pricing remains a challenge, particularly for homes priced above $500,000.
Questions? Call Me!!
Please give me a call if you have any questions about this post or need other specifics about the I’On real estate market. If you are thinking of selling, please contact me to learn more about my marketing program for your home. I have sold dozens of homes in I’On over the years and have an intimate knowledge of this community, what buyers are looking for, and how to get your home sold. Have a great week and I hope that you continue to take advantage of all the special activities and events that I’On has to offer!!