Tuesday Numbers

There were 348 new listings today and 195 sales, for a sell/list of 56.03%. Of the sales 27, or 13.85%, went over list. 6 of those were on the Westside. 3 were in East Van, 3 were in Richmond, 1 was in Port Coquitlam, 1 in Port Moody, 1 in Pitt Meadows, 3 in North Van, 1 in Coquitlam, 2 in Burnaby and 6 in Surrey.

Average list price of the sales was $497,045, while the average sales price was $490,170, a difference of $6,875, meaning the average sale went for 1.53% under list price. 29 properties went for list price. One property went for 28%($65,000) under list while the highest over list was 13% ($61,000) over . Average days on market to sale was 31.

There were 6 million dollar plus properties sold with two over $2 million.

There were 138 price changes, of which 17, or 12.32%, were increases. The average original list price of price changes was $578,550; the average new price was $555,913, a difference of $22,637, meaning the average price change was -3.93%. One property had its price reduced 38% ($150,000) while another had its price increased $56,000(11%).  Average days on market to price change was 50 days. 1.00% of all listings reduced their prices today.

Inventory in my target area reached 12,155, while over 90s reacehd 1,965, or 16.17%. The 14 day rolling sell/list fell to 66.43%.

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14 Comments

Filed under Daily Numbers

14 responses to “Tuesday Numbers

  1. Domus

    Good old numbers….cheers.

  2. Coq_Mike

    Rob said:

    “In regards to discount brokerages, are you aware that they pay people less to work with them? Imagine that you were a Realtor. My listings indicate that I’ll pay you 3.255% of the 1st $100,000, and 1.1625% of the balance if you bring me a buyer and we successfully negotiate a sale. The discount brokerage indicates that he’ll pay you $2500. “

    My wife and just sold a house that was two blocks from a 1% Realty property that compared very closely to ours. Our place was priced about $8000 lower, but the 1% Realty house was 3 years newer and had a couple more updates than ours did.

    I had strongly considered 1% Realty thinking I could afford to price the property a little lower and therefore sell quicker. In the end we had decided to sell our house with a full service real estate agent. I still was not sure paying the extra commission was going to be worth it.

    Having that 1% Realty house so close to my house and going with the full service agent was the best things that happen. I was home during a couple of showings and I can never recall seeing a buying real estate agent make my property sound so nice. I now can completely understand why some of the real estate agents who bus clients around all week long do not care too much for the 1% Realty places.

    I am sure that the 1% Realty house will sell, but I now love calling it the “invisible house”.

  3. coco

    coq mike,

    Any real estate agency, including One Percent who doesn’t pay a real estate agent full commission barely gets any showings.

    Listed a property with One Percent, 7 showings in 2 months. Relisted with a full service agent 7 showings in two days. The full service agent admitted they do not show One Percent listings unless the client absolutely persists to see a One Percent listing, due to the reduced commission rates.

  4. deb

    craigslist real estate is getting pretty full these days. I pop “reduced” into the search and more and more properties are coming up.

  5. rebytes

    Fully agree. We sold our house with 1% a few years back and were very unhappy with the type of service we got and the amount of showings. Understandably most realtors would prefer to show their clients a house that is listed with a full commission realtor–as a result we got very few showings. We tried to back out to list with another realtor but would have had to cover our realtors advertising costs. We were actually very disappointed with the amount our house was advertised and with the amount he was going to charge for that little advertising. We had one of the nicest houses in the neighbourhood and after only two showings. We ended up selling to one of his clients which turned out to be a complete schmoz–the buyers actually wanted to sue him for his incompetence. It doesn’t mean all 1% are like this, but we learned you get what you pay for.

  6. el_bubb

    my story is different… couldn’t sell a house on the Vancouver Island with a regular agent for 2 months, so had to switch to 1%… sold the place in 3 weeks. saved some money.

  7. ObserverX

    “The full service agent admitted they do not show One Percent listings unless the client absolutely persists to see a One Percent listing, due to the reduced commission rates.”

    So much for “agency” … in the current system, the notion that the RE agent will “look out for the best interests of the client” is a total joke and I don’t know why the RE profession is even allowed to promote itself that way.

    Don’t get me wrong, I’m not saying that RE agents don’t provide a valuable service or that they should work for peanuts but let’s call a spade a spade when it comes to the default commission structure. I’m not familiar with agency agreements in other areas but my understanding is that typically they are structured so that the interests of the agent are *aligned* (or at least neutral) with that of the client, not *against*. I suppose it could be argued that the buyers/sellers bring it on themselves for accepting the status quo. If I were retaining a buyer’s agent, I’d say “If the 1% listings aren’t offering the standard commission that you expect, I will top it up so show me everything.” Then I’d simply factor that cost into the price I’d be willing to offer for the given property. Simple.

    C’mon realtors, why won’t the RE profession come up a default commission structure that aligns with the intent/responsibilities of “agency”???

  8. accountant88

    ObserverX wrote:
    C’mon realtors, why won’t the RE profession come up a default commission structure that aligns with the intent/responsibilities of “agency”???

    That would be “Price-Fixing” or some other fancy term.

  9. robchipman

    accountant88:

    Bingo. That’s one of the challenges. Still, pretty easily solved. The solution depends on an informed consumer (eg – ObserverX has already pointed to it, so I think he gets the big picture, even if he can’t supply all the details).

  10. ObserverX

    I’m not suggesting a “Price-Fixing” structure, just a more sensible starting point for negotiating commissions than the existing one (which some uninformed or lazy people assume is the only acceptable one).

  11. robchipman

    OX:

    I’m not saying you are, but completely negotiable commissions (required to avoid the restriction of trade issue) make the easy default arrangements tough. I’ll try to post a fuller discussion tonight.

  12. Buck Wild

    “The full service agent admitted they do not show One Percent listings unless the client absolutely persists to see a One Percent listing, due to the reduced commission rates.”

    Is this not SOP for all full commission “agents”?

    Perhaps it will change a year to 18 months from now when there are 20K listings and the price changes go from this weeks -3.93% to -13.93%.

    But probably not.

  13. CC

    In my understanding of agency law, it would clearly be a conflict of interest for a realtor to not show his client a good candidate property simply because the realtor wouldn’t make enough money on the deal.

    The only way this wouldn’t be a conflict is if the agency agreement made it clear that the agent was not under a “normal” agency obligation regarding listings with discount brokerages.

    Rob, you keep going back, again and again, to the fact that given the average number of transactions per realor (number of transactions divided by number of realtors), realtors simply must make high commissions on each sale. This continues to be entirely specious reasoning. What “should” happen, in a properly functioning market, is that the supply of realtors should decline until they all could survive charging a competitive (rather than colluded) price. 9000+ realtors are not
    “entitled” to make a living in the industry. The good ones will earn such a living. The others should do something else.

  14. News Flash

    “We tried to back out to list with another realtor but would have had to cover our Realtors advertising costs. ”

    All you had to do was increase the buyers agent commission. That is why you did not get the showings. No need to change realtors.

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