Dominion Valley Tournaments Quarterly: 1st Quarter 2022
Welcome to the very first edition of the Dominion Valley Tournament Quarterly. This is what is referred to as a “hyperlocal” real estate market report. It focuses on the market of Tournament townhouses built by Toll Brothers in Dominion Valley. The floor plans in the Tournament collection include the Lindenhurst, Trent and Dunmoor. If you aren’t sure which Dominion Valley townhouse report you should be following, please reach out to us at Homes@SellingDominionValley.com.
During the months of January, February and March 2022, there was only one Dominion Valley Tournament townhouse that sold. Given the extreme buyer demand and very limited inventory, we are positive that if more Tournament townhouses had come to market, they would have also sold. Below this paragraph you will see the specifics of that Tournament townhouse sale from the first quarter.
When we look at this sale, the first thing we see is a $50,000 jump from list price to sold price. The seller’s market has yet to be majorly impacted by steep increases in mortgage rates seen in the first quarter. Did you know that mortgage rates had increased about two points by the time the first quarter was over?
One sale alone is not enough to get any takeaway in terms of market trends. For that reason, we take this first quarter and combine it with the second, third and fourth quarters from 2021 to get an entire year’s worth of data. From that, we extract six and twelve month benchmarks. These are where we get market trend information. The latest market markers are pictured below this pargraph.
The sold price column is always the logical place to start any market analysis. It turns out the sale from the first quarter of 2022, was also the only sale in the last six months. That is why you see its values repeated in the six month average and median spots. Compared to the twelve month average and twelve month median sold prices, this Tournament townhouse sale in Dominion Valley is showing just how hot the market has been for sellers. It was not unusual to see buyers making offers five to seven percent higher than list in the first quarter.
Seller subsidy is a term used for closing cost help given from seller to buyer. It has been a very long time since we have seen any listing offer seller subsidy. In this seller’s market, seller subsidy is a point of negotiation starting with the buyer. That is usually off the bat in an offer, or during inspection repair negotiations. The only value not at zero is the twelve month average. This number is the result of one Dominion Valley Tournament townhouse seller out of ten in the past twelve months that gave $3,500 in seller subsidy. Certainly not typical of a seller’s market. Better news is the majority of Dominion Valley Tournament townhouse sellers gave nothing in seller subsidy. This may change as buyers are facing higher interest rates.
Days on market is one day longer in the six month values than the twelve month values. However, a jump from four days to five days to go under contract is virtally meaningless. Dominion Valley Tournament townhouses are selling very quickly.
If you placed your Tournament townhouse on the market, priced to current conditions in Dominion Valley, you could expect to be under contract in a week or less. You could also expect to give nothing in seller subsidy.
As interest rates continue to rise, buyer demand does not seem to be letting up. It is still considered a seller’s market. Of course, relying solely on market conditions for a best outcome when selling your home is ill advised. It may come as a shock, but even in a market like this, sellers can leave money on the table. We are proud that our sellers hit the absolute top of the market. That is because they get proper listing preparation advice, professional marketing to increase buyer enthusiasm and skilled negotiation.
The next Dominion Valley Tournament Quarterly will be out in July. Until then, if you would like to discuss what our combined 33 years of local real estate experience can do for you in the sale of your townhouse, reach out for your own confidential consultation. We Love Selling Dominion Valley!