It was a typical January with listings taken soaring even as closings dropped precipitously. The median closed sales price of a Single Family Residence (SFR) improved only slightly to $218,650 from $217,000 while the average closed sales price of an SFR dropped by 1.6% to $248,424.
Frankly, I was expecting more closings and even the chart below doesn’t really explain what happened. On the surface it appears that there was a surge in cash closings in January. However, that was not the case – it was the slowdown of conventional loan closings that give the appearance that “cash was king” in January. That slowdown certainly did not impact FHA or VA closings, as they remained at normal levels for this market.
Let’s Take a Closer Look at the Start to 2016!
Despite the slow beginning to 2016, January still achieved a 5% improvement over January 2015 closings. So lets wait and see if TRID closings catch up over the next few months.
Are Your Listings Languishing?
We mentioned earlier that there was an extraordinary increase in listings taken with 4491 new listings taken in January compared to only 2891 in December. However, the chart above shows very clearly that those new listings taken (the red line on the chart) were taken at significantly higher prices even as prices fell. That set the table for more over pricing!
Those who have been in my classes or sales meetings may have seen the video in the link below, but this short video is timeless. It’s a listing presentation where George Segal and Richard Benjamin are trying to sell their house. You will certainly enjoy this: