Back on May 2, I wrote about days on market versus price range. The recent sale of former Blazer, Scottie Pippen’s house underscores that the higher the price, the smaller the pool of buyers.
At the median home price and below, there are lots of potential buyers. The majority qualified (and desiring) to be in the market can compete. The first time buyer competes with investors, downsizers and anyone else. As price moves up, segments drop out until the pool shrinks and there are just a few buyer’s left. Pippen’s house took 812 days to sell and had two different agents. He also lost 25% whereas the market increased at least that amount. If you have 500 homes that sold in an average of 50 days and you add one that sold in 812, the average time on market shifts 1.52 days up. Also note that it was listed under four MLS numbers and the last was only six days old at time of close!
Think there is some truth about not owning the most expensive house on the block? In Portland, there are two different houses priced at $5,750,000. There are some more expensive residential properties in the area but are typically on acreage.