Hot off the Presses – over $1bn Sold…
I always find it amazing how what seem like benign issues, from a design flaw to the listing got stale to a plentitude of other factors, can drastically affect value. One would think, design flaw – furniture can fix that; listing got stale – drop the price a little and that will reinvigorate it, etc. But, it is not that simple. Take 10 and 14 Pippens Way – same size lots that abut each other, almost same livable square footage 4,926 sf and 4,300 sf, respectfully, both have pool, spa and cabana and similar quality finishes. 10 Pippens Way sold for $5.55mm on 8/20/2020. 14 Pippens Way sold for $4.6mm on 9/3/2020. That’s basically a $1mm, or 20%, delta! Why? Not entirely sure, but there is one glaring difference, 10 Pippens Way was on the market for 5 days; 14 Pippens Way was on the market for 526 days. I’m a firm believer in pricing the property to sell right out of the gate. “Testing” the market can lead to the disastrous outcome of the listing getting stale, which makes buyers think there must be something wrong, which ultimately leads to a lower price.
The market continues to crank. It set a new record – the earliest it has broken the $1bn mark in a calendar year by far.
Year over year comparison of YTD total volume:
’09 – $256mm *Lowest total yearly volume.
’10 – $463mm
’11 – $370mm
’12 – $516mm
’13 – $507mm
’14 – $699mm *$1bn+ year.
’15 – $596mm
’16 – $712mm
’17 – $780mm *$1bn+ year.
’18 – $797mm *$1bn+ year. Highest total yearly volume.
’19 – $698mm *$1bn+ year.
’20 – $1.049bn *$1bn+ year.