Is seller confidence on the rise again?

According to the data, it would seem so. We used statistics gleaned from the last seven years to compare the average list price per month in Rhode Island with the average selling price per month. The difference between the two has a lot to do with seller confidence. The greater the difference, or the more sellers think someone will pay for their home versus what buyers will actually spend on the home, shows that sellers are confident in the original listing prices.

However, greater differences also may tell the tale of vastly overpriced homes. The greatest difference between list price and selling price occurred in December of 2009 with a difference of $64K. That’s quite a disparity. December of 2009 marked the height of the recession, so this figure makes sense. The lowest figure comes in during the summer of 2011 with a $15K average difference between list and sell price.

listpricesalepricediff_april2015

So, where are we headed? Since October of 2014, the data has shown that the difference is growing once again. This could mean increased seller confidence, but it could also point to another dip in the economy on the horizon. It could also point to sellers inaccurately pricing their homes. While data is useful, the real estate world can be very unpredictable, and certain cities and towns in Rhode Island may be less affected than others.

Your best bet? Work with a trusted, local real estate agent. Find someone who will advocate for you on a personal level with regards to your real estate purchase – an agent who will get into a crawl space if necessary during your inspection. That kind of partner is needed to navigate the complexities of purchasing or selling a home.

Article by Jess Dempsey

Working full-time in finance and part-time as a sports blogger, Jess has been obsessed with architecture, interior design, and real estate from an early age. She has an affinity for shipping container homes and blames this on The Boxcar Children book series. When not drooling over oceanfront property, Jess can be found at Rose Nulman Park in Point Judith watching the surfers and eating fresh calamari.

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