Average Days on Market

If you’re selling a home in Hot Springs Village, your Realtor should be talking to you about “Days on Market til Sold.”  This term is widely used to determine how long it should ordinarily take to sell your home in today’s market. 

In Hot Springs Village, for the first eight months of the year, the “Average Days on Market til Sold” for homes is 113 days.  That’s about 3.8 months (ref. CARMLS).

To determine the “Average Days on Market”,  simply take the homes sold for a particular time period and add up the number of days those homes were on the market before they sold.  Then, simply divide that number by the number of homes that were sold.  The resulting number gives a seller a reasonable expectation about how long it should take to sell their home assuming they have priced it correctly and they don’t have any other issues that might complicate the sale. 

According to Jeff Hollansworth, owner of RE/MAX in HSV, this is an important number for several reasons.  “When you compare the “Average Days on Market til Sold” with previous time periods,  you’re able to determine whether the market is improving,” said Hollansworth.  “Two years ago it was taking almost 5 months to sell a home and clearly we are moving in the right direction.”

Being able to accurately price a home is one of the most important things an experienced Realtor can do.  “RE/MAX agents have multiple resources to assist with this process and it’s one of the reasons Villagers overwhelmingly choose RE/MAX,” said Hollansworth.  “Incorrect pricing will either cause the home to linger on the market or conversely will put the seller in the position of leaving money on the table.  Neither of these are good outcomes.”

When selling one of your largest assets, look for a company with proven results.  Through June, RE/MAX agents sold, on average, 290% more homes than non-RE/MAX agents.  National exposure and the strongest marketing available, is what you need to sell your home.  No other franchise sells more homes than RE/MAX.  

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Considering selling or buying a home in Hot Springs Village next year?  Here are some notable predictions:
Home Values:  In the 52 largest markets in the United States, home values rose about 12% in 2013.  According to Zillow Research, this will fall dramatically to only 3% in the coming year.  This is due in part to a rise in interest rates, fewer foreclosures and more new construction.  And, while the Village didn’t participate at all in this price appreciation last year (negative 1% to be exact), that doesn’t mean that prices won’t see some appreciation.
Hot Springs Village Arkansas real estate has largely missed the rise in prices experienced throughout the country,” said Hollansworth.  “Many buyers are realizing how far their money can go in our market and are looking to take advantage of this in the months ahead.  New construction, although a bit ahead of last year, remains at a decade low in the Village and won’t crowd out re-sale home sales.”
Mortgage Rates:  Most analysts, including Zillow, agree that mortgage rates will eclipse the 5% mark in 2014.  That will put downward pressure on pricing because every point increase raises the typical mortgage in the Village by $120 per month (assuming a $200K home).  “However, mortgage rates around 5% would still be low on a historical basis and would continue to allow the housing market to grow in 2014,” said Hollansworth.
Home-Ownership:  Although many people still believe homeownership is part of the American Dream, Zillow predicts that homeownership rates will fall to their lowest level in nearly two decades. Along with a weak labor market, foreclosures will continue to displace homeowners and keep rental demand high. 
“The dilemma we face in the Village,” said Hollansworth, “is competing with Boomers who are “retiring in-place” as well as competition from other communities that offer an array of amenities; some of which the Village offers and others that we are just now addressing.”
If you want results in this market, RE/MAX is the clear choice.  Our customers understand the importance of Trusting the Market Leader.  You can’t afford to make mistakes – Call RE/MAX at 888-828-9478.