Why are all of the homes for sale in my subdivision priced so far above comps?
I just purchased a home in a 1950s subdivision where the houses are pretty similar so the sales prices usually don’t vary much. My husband is an agent and we’ve been watching the sales activity since 10/01 out of curiosity.
There are 12 properties that are or recently have been on the market: 4 sales, (2) @ 141K, (1) @ 140K, and (1) @ 110K (apparently trashed). A listing at 172K expired; another @ 142K is temporarily off the market for repairs.
The remaining 6 properties range from $149K to $169K. DOM ranges from 200-30, and there have not been any significant price drops in the last 2 months.
My purchase was the $140K. Next door is listed at 149K (since AUGUST). I wouldn’t say it’s vastly different from ours, except that our kitchen has been updated and this was last done c. 1975. Right around the corner, a house with the original kitchen and 1950s bathrooms went on the market a month ago for $154K!
What are these agents thinking?
My husband and I discussed this last night, but I’m curious what others think.
All of the recent sales happened close enough together that none of us had the others’ sales to use as comps. It’s purely accidental that our sales prices were so similar.