What is it about numbers that makes them important? Well, for one, if entered correctly numbers do not lie. Despite what some have tried to convince us of over the past several years 2+2=4 and always will. Numbers tell a story and usually a very precise one (again, if correctly inputted.)
It is imperative that any business KNOW their numbers. Numbers from last year can tell how well or how poorly a business performed during that year. Current numbers can tell how well things are going and will give some indication of how things will go in the future. Any business that does not know their numbers is probably not going to be a business for very long or at least not a very well run business.
I have been doing some market updates for several Phoenix West Valley Cities in order to tell what the market is doing. I have been looking at the numbers. Numbers tell me almost everything I need to know about the market in any particular city. Numbers, do not lie.
One thing I have noticed is that the average active list price in many areas is way above what homes have actually been selling for in the past 30 days. This tells me that homes are being overpriced. This is one of the biggest mistakes that can be made when putting a home on the market. Even though the Phoenix housing market is increasing, the difference in numbers that I am seeing does not justify some of the ridiculous list prices that are appearing.
For instance, one city has recent 4 bedroom homes selling at an average of $237,700 while the average current asking price of 4 bedroom homes is $397,900. Apparently there are a lot of people (Realtors included) who are not looking at the numbers. In another city, one subdivision has 3 bedroom homes selling at an average of $323,317, while the average asking price for 3 bedroom homes is $397,579. A $74,262 difference. Do you think just maybe at least some people are not pricing their homes correctly? Let me ask it another way, would you pay $397,000 for a home that was only comping at $323,000? Neither will any smart buyer, so why would you over price your home?
What exactly happens when you are trying to sell your home and the numbers do not line up? Well, your home sits and sits and sits and sits and does not sell. Nor will it sell until you adjust the numbers. The market will tell you what buyers are willing to pay for homes that are similar to your home. That number needs to line up, or at least be close to what you end up asking for your home.
Remember this, when your emotions are telling you to list your home at$350,000 and the market is telling you that your home is worth $300,000, emotions can lie, numbers will not.
Know Your Numbers in The Phoenix West Valley Real Estate Market
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