Home sellers got 95 percent of asking price
According to the 2011 National Association of Realtors® Profile of Home Buyers and Sellers which recently surveyed 5,708 home buyers and sellers, home sellers did well this year – among recently sold homes, the sales price was a median 95 percent of the listing price which was consistent across all regions.
The trade association report notes that sellers who said they sold under urgent circumstances were more likely to accept a price under 90 percent of the asking price whereas those selling under less urgent circumstances were more likely to receive 95 to 99 percent of the original asking price.
Median time on the market
The median time on the market for recently sold homes was 9 weeks and one in four sellers reported that their home was on the market for two weeks or less. Homes in the Midwest and Northeast averaged 12 weeks on the market and homes in the West and South averaged 8 weeks.
The ratio of sales price to listing price and the time on market were “highly correlated” this year, according to the report. Typically, the longer a home is on the market, the greater the price discount. Homes on the market for under one week typically received 100 percent of their asking price with 2 percent actually receiving more than their asking price. Homes on the market 17 weeks or more typically received 90 percent of their original asking price.
Intuitively, homes on the market longer are more likely to reduce their listing price with 89 percent of homes on the market one week or less never reduced their asking price while one in four homes on the market over 17 weeks reduced their price at least four times.
While most homes on the market received at least 90 percent of their asking price, as with any year, the longer a house sits on the market, the more price reductions are offered to buyers.