North Beach Condo Sales Stall?

During the last 6 months, six condos have sold in North Beach, for an average price of $805,000.  The average days on market is 42 (a statistic that includes the marketing period, and the number of days this property was in contract before the buyer lifts their inspection and financing contingencies).

By comparison, there are four condos currently for sale, with an average days on market figure of 92 days for homes, which are on average, much smaller.  What is going on here?  Is the market cooling?  Are there fewer buyers?  Are these condos not priced properly in the market?

Looking at data from a year ago, the average days on market of condos for sale was 26 days.  Another statistic, the Months Supply of Inventory (the # condos per sale relative to the sales rate), has increased from less than one month to almost four months.  What does this mean for Sellers? 

In this market, it means that you need to properly prepare your home for listing, price your home correctly and accurately and market it well from the start.  Why? Because Buyers, when they see homes that have been on the market for a while always ask if there have been other offers.  They wonder: What is wrong with this condo?  Well, it could be that it is over-priced.  Or perhaps there is something wrong (leased parking v. deeded parking, noisy street, upcoming HOA assessment, HOA fees higher than average, large pest report, deferred maintenance, etc.). 

Given all of the media attention of the last few years about the declining real estate market, buyers want a bargain.  In many cases, no matter where a home is priced, a buyer will want to write under asking.  But, Sellers, if it is priced too high, Buyers sometimes will not write at all--they think you are unrealistic and will select another home and write a purchase contract there.  Bottom line:  it is really important to prepare properties properly, price them correctly and accurately and to market your home correctly from the start.