February 2017 Pin Oak Village Real Estate Market Report
In February 2017 Pin Oak Village had 8 homes on the market (one active, six pending and one sold), as of March 20th there are now 7 active or pending.
The home that sold in February was a distressed listing and sold at $94/sq ft after 34 days on market. It sold $15,000 less than it’s original listing price.
March has seen the brunt of the activity with sales closing and new listings, but that will be provided in the next month’s report.
A months of inventory report shows Pin Oak Village at 1.8; Months of Inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This indicates that it is a HOT seller’s market in Pin Oak Village.
Something interesting to note about list pricing. Two one-stories in Pin Oak that went on the market in February and March tried pushing market values and pricing really high. Well versed agents try to steer their clients away from significantly over pricing for many reasons, which I’ll go into in a separate blog post about pricing right. One of the several issues you can encounter by significantly over pricing is appraisal. These two homes went under contract rather quickly. However, both homes lost the contract after lower appraisals came in, which affected buyer financing…the variance couldn’t be negotiated and the deals were lost. In both cases these homes went back on the market at a lower, yet still high price. One of them ended up terminating and renting out the home and the other is currently under contract and still higher than the appraisal value, so it’ll be interesting to see if it makes it through with the second buyer. Ultimately, a home will sell for what someone is willing to pay for it. Sometimes you get lucky and find a buyer who will pay more. However, in most circumstances buyers (with financing) do not have the cash to pay the difference out of pocket. When the home re-lists it lists lower and you’ve lost a lot of that initial momentum with showing traffic and buyer interest. We’ll certainly stay on top of these trends and how these deals are panning out. There’s a third I have my eye on…for if these others had appraisal issues the third is bound to as well.
NOTE: due to incorrect subdivision input by agents into the MLS this data may contain a few outliers from the subdivision that may affect the data slightly.