The first graph showing market activity on a monthly basis since January 2013 shows that the inventory shortage is starting to subside slightly. Homes ‘For Sale’ in August 2014 is 173 homes which is down 11.3% compared with last month but up 20.1% compared with the same month last year. Homes ‘Closed’ in August 2014 is 35 units which is down 16.7% compared to last month and down 38.6% compared to last year. On the bright side, homes placed under contract (pending) in August of 2014 is 65 units which is up 54.8% compared to last month and up 44/4% compared to last year. For the 3rd quarter of 2014 compared to the 3rd quarter of 2013 homes listed “For Sale” are up 15.2%; homes “Sold” are down 5.9% and homes “Pending” are up 8.2%.
The average “List Price” for single family homes in Mentor remains fairly steady over last year at $188,000 while the average “Sale Price” also remains steady at $166,000.
The “Months of Inventory” graph illustrates the low-inventory trend line in Mentor. Currently Mentor has a 4.9 month inventory of homes ‘for sale’ which means that at our current sales pace it would take 4.9 months to sell off the current inventory if we didn’t list another home ‘for sale’ in that time period. A ‘normal’ market is a 6-month inventory which means that Mentor is a fairly hot market right now.
Interest rates are holding at their historic lows and the overall economy is starting to show some signs of life which certainly help the real estate market. If you’re thinking of selling your home, now is the time. The law of “Supply and Demand” is working in your favor with decreased inventory and high demand. Buyers are out in earnest very early in the year creating a high demand and competition for the available homes. The demand will diminish later in the spring as the early buyers will have purchased already taking them out of the market and competing sellers start to put their homes on the market later in the spring when the flowers start to bloom. Homes listed very early in the year have the advantage and generally sell more quickly and at a higher price.
If you have any questions, or are thinking about buyer or selling a home, please call The Crockett Team, Howard Hanna at (440) 974-7444. And remember, whether buying or selling, it’s to your advantage to have the ‘Very Best’ representing your best interests.