If you have a home in Little Elm, you probably want the latest info on whether ALL THOSE GAINS are holding or if you are losing value. Here is some info that will help us figure this out.
Past 90 Days Sales sorted by Price Range
The best way to tell if your home is gaining in value or losing value is to see WHAT PRICE RANGES are most active. The peak of buyer activity is in the 400-500k range, with the 500-600k range coming in second. Coming in at 3rd place is 350-400k range.
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The next chart will tell you the HEALTH of each Price Range, by looking at Days On Market (DOM). Determine health by seeing which price ranges sell the quickest.
The DOM is the blue line, with the average Days on Market scale on the right side of the chart. By combining both data points, we can determine which price ranges are MOST HEALTHY and least healthy.
Price Range Health Report
250-300k
There are not many homes for sale in this price range, so we have to assume that if they do, it's because they are in rough condition. The low DOM here show the rabid investor activity to capture these within a day or so of becoming available. Super Healthy.
300-350k
With fewer than 60 homes being sold in this price range, this is another price range of SCARCITY. The average home in this price range that comes up for sale is under contract in less than 5 days. Very Healthy
350-400k
We continue here with good volume and great demand. Almost 100 homes sold with 14 average days on market, values are holding strong. Very Healthy
400-500k
Growth! Abundant and wonderful value growth. This is the MOST POPULAR price range, so be confident that our current elevated interest rates are not going to dampen the party in this price range. Over 160 homes sold with 17 average days on market. Very Healthy
500-600k
We should all be amazed by this price range, because the mortgage payment (with a 5.7% interest rate) in this price range is around $3,032. Add in the property taxes of 8k per year and 200 dollars per month for home insurance and the Total Budget Payment is closer to $3,898. For 100 homes to be sold at an average days on market of 18 days, this represents the upper end of buyer demand with plenty of eligible purchasers chasing the home of their dreams. Your values are currently holding and even incrementally increasing. Healthy
600-700k
The average year built of these homes is 2017, so let's assume that these are all move-in ready and stacked with top-end amenities. Builders start to get burned in this price range and beyond because it's hard to figure out just how many buyers can afford homes like these. Fewer will get built any given year due to this. So the 40ish homes sold over the past 90 days isn't concerning. Especially since the average home in this price range is being sold in less than 18 days. It's a slippery slope for home values if we go any higher on price but as long as supply is semi-scarce, there is enough demand to hold values at current levels. Stable (for now)
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700-800k
Less than 10 homes sold over the past 90 days and OVER 27 days on the market, this is not good. When interest rates go up, the amount people have to pay to live in homes like these skyrocket. There are not enough buyers in the market to support the current amount of homes in this price range. Unhealthy
800k +
Above 800k is difficult to determine due to the unique attributes of the homes and limited sales data. Please contact me directly if you would like to know more about your home value in this price range. You may have to right arrangement of amenities that strikes a chord with buyers and be able to keep your recent value gains. Case by Case
So it's all about the interest rates. Little Elm'ers! You have gone to battle with the rising interest rates and MOST of your homes are keeping the huge value gains of the past couple of years. The articles of gloom and doom from across the county in your newsfeed are not about homes like yours, Texas is just better. Stay tuned here to keep in touch with how awesome Texas continues to be!
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