Tug of War - Fair Market Value?

I just published a pretty comprehensive look at the town of Harvard's real estate market in two market reports on HarvardRealty.com. I think my blog readers and property sleuths will find these reports very helpful in level setting the Harvard market for 2008.

As you are well aware, it has become a tug of war between buyers and sellers to identify the fair market values of properties. To keep the market moving we need actual sellers. What do I mean by "actual sellers"? Actual sellers are property owners who want to sell their properties within a reasonable timeframe and are realistic about today's fair market value of their property based on recent comparative market statistics and projected market conditions.

Last year the average original list price for single family homes in Harvard was $689,524 and the average sale price was $590,503. That's a $99,021 difference or a 14% price reduction in a market where price was just about everything. To be fair I looked at a neighboring market to see what kind of pricing gap they faced. So let's take Bolton - Bolton's average original list price was $670,832 and their average sale price was $621,836 which is a 7% price reduction, a difference of $48,996.

In general, it is my opinion that a 14% tug of war on value in Harvard is pretty painful for both buyers and sellers. No one wants to put an offer in on a property that is $100,000 out of their price range and no one wants to see an offer that is $100,000 less than what their asking. The truth of the matter is that fair market value is much easier to deal with for everyone when it is just that - fair.

The Correction - Prices of Homes in Harvard

Some may find the 2007 sales results for the town of Harvard surprising even though a market correction has been widely predicted by experts for quite some time. As you can see at left sale prices are not climbing exponentially like they were in the early part of the decade.

While Harvard experienced a 36.1% median sales price increase from 2002 - 2004 it recently saw a 8.6% median price decline from 2005 - 2007. In 2007 alone the median price for a single family home in Harvard declined by 6.8% to $550,000 down from $590,000 in 2006.

Pricing, property condition, and inventory levels will continue to pose a challenge for both buyers and sellers laboring through this market correction in 2008. Remember I'm here to help!So if you do want to make a move give me a call and I'd be happy to help you make the best real estate decisions.

For more detailed market information, or to ask a question call me at 978-456-3855 or email me at: marysprague@harvardrealty.com.