Chelsea Real Estate Market is explained by expert Kathy Toth. Let’s take a look at the Chelsea real estate market. There are 5 Chelsea homes pending in the market overall. This leaves 101 Chelsea homes still for sale. The resulting pending ratio is 4.7% (5 divided by 106). So you might be asking yourself, that’s great… but what exactly does it mean? We are glad you asked!
The pending ratio indicates the supply & demand of the Chelsea real estate market. Specifically, a high ratio means that listings are in demand and selling quickly. Alternatively, a low ratio means there are not enough qualified buyers for the existing supply.
Taking a closer look, we notice that the $200K – $300K price range has a relatively large number of contracts pending sale.
Notice that the $200K – $300K price range has a relatively large inventory of properties for sale at 39 listings. The median list price (or asking price) for all properties in this market is $303,495.
A total of 151 homes have closed in the last 6 months. They have a median sold price of $265,000. Breaking it down, we notice that the $200K – $300K price range contains the highest number of sold listings.
Alternatively, a total of 16 listings have failed to sell in that same period of time. Listings may fail to sell for many reasons such as being priced too high, having been inadequately marketed, the property was in poor condition, or perhaps the owner had second thoughts about selling at this particular time. The $300K – $400K price range has the highest number of off-market listings at 4 properties.
You might be wondering why average days on market (DOM) is important. This is a useful measurement because it can help us to determine whether we are in a buyer’s market (indicated by high DOM), or a seller’s market (indicated by low DOM). Active listings (properties for sale) have been on the market for a median time of 46 days.
Analysis of sold properties for the last six months reveals a median sold price of $265,000 and 24 days on market. Notice that property in the $0K – $100K price range has sold quickest over the last six months.
The recent history of sales can be seen in the two charts below. The median sold price for the last 30 days was $243,000 with a DOM of 26 days.
Since the recent DOM is greater than the median DOM for the last 6 months, it is a negative indicator for demand. It is always important to realize that real estate markets can fluctuate due to many factors, including shifting interest rates, the economy, or seasonal changes.
Ratios are simple ways to express the difference between two values such as list price and sold price. In our case, we typically use the list-to-sale ratio to determine the percentage of the final list price that the buyer ultimately paid. It is a very common method to help buyers decide how much to offer on a property.
Analysis of the absorption rate indicates an inventory of 4.0 months supply. This is based on the last 6 months of sales. This estimate determines how long it would take to sell off the current inventory of properties if all conditions remained the same. This estimate does not take into consideration additional properties that will come onto the Chelsea market in the future.