STATS TIP: Another way to show your clients the market is changing

Last month, over 600 members read our stats tip on how to use the Sales-to-Active-Listings ratio to help prove to your sellers that the market is changing. So, since we’re on a roll, we thought we’d share another one with you.

Again, head to the FVREB Stats Centre, select your sub-area and property type. At the bottom, click on the Percentage of Original Price button and select Average.

Also known as the sale-price-to-list-price ratio, this is the percentage of what Fraser Valley homes are selling for compared to their original asking prices. (Note: Not the final list price, but the first list price. In a protracted seller’s market, price reductions are rare, but as you know, they’re commonplace during a buyer’s market.)

In a nutshell: how much buyers, on average, were willing to pay for a home compared to what sellers were asking for.

Check this out. Below are two screen captures from the May 2021 graph for Percentage of Original Price (Average) for sales of single-family detached in the sub-area of Abbotsford West.

In May, REALTORS® on average still achieved almost 3 per cent over asking; but look how that’s decreased since March – a reduction of almost 10 per cent.

In May, a detached home in Abbotsford West got on average 2.9% more than asking price.
Two months ago, that same typical, detached home was fetching 12.6% more than the asking price.

In May, the MLS® HPI benchmark price – or price of a typical detached home in Abbotsford West was just over $1.1 million. This metric, comparing list price to sale price, illustrates that buyers were still prepared to pay on average $32,000 over asking, but not $132,000 over.   

Clearly, May numbers still reflect a seller’s market for most areas and property types in our region, but this is another way to show your sellers (and buyers) that there has been a significant change in just two months, the market is shifting and they may need to adjust their expectations.

Haven’t used the FVREB Stats Centre before? Run, don’t walk! 

As always if you need help with any Board apps or tools, feel free to contact your  

Source: FVREB Communications