Over the past year, Eagle Ridge homeowners have consistently listed their homes at a higher price per square foot than that of what they actually sold them for. This is normal in all neighborhoods across the Valley. What we need to pay attention to here is the (difference) between the two values.

Pricing your home right the time you first list it is paramount! On the charts below, I’ve categorized the homes in Eagle Ridge by their bedroom size. Since we have a dozen or so different models with a wide variety of upgrades and improvements, it was necessary to group the homes together. Please note that most appraisers will place a higher dollar per square foot value on a single level home than that of a multistory. Also, amenities such as swimming pools and lot sizes were included in the statistical data.

3-Bedroom Home Analysis:

The LPSF (Listing Price per Sq. Ft) and the SPSF (Sales Price per Sq. Ft) remained the same from January 2006 to December 2006. However everything changed from January 2007 to December 2007. By the end of 2007, the LPSF dropped 14% and the SPSF dropped 13.7%. Unfortunately for Eagle Ridge homeowners, this trend continues into May 2008.

On average, the largest difference between List Price and Sale Price occurred between January and June 2007 as homeowners were caught off guard by the drastically changing market. As prices in other neighborhoods dropped, Eagle Ridge homeowners were slow to reduce their listing prices. In the following months, homeowners began to price their 3bdrm homes lower and ultimately closer to the final sales price per square foot.

4-Bedroom Home Analysis:

Many of the 4-bedroom homes in Eagle Ridge that sold in the last two years are 2-level. Traditionally, two story homes will net a lower price per square foot. From January 2006 to June 2007, there was a steady decrease in the home values. The differences between LPSF and SPSF were larger for the 4-bedrooms than that of the 3-bedroom homes.

Also, as you can see on the above graph, the 4 bedroom homes maintained their values slightly longer than the 3-bedrooms. But once the prices dropped, they really dropped! From July to December 2007, 4 bedroom homeowners in Eagle Ridge witnessed their home values drop dramatically. By the end of 2007, the LPSF dropped 20% and the SPSF dropped 20%. How does this compare to 3 bedroom properties? It shows a 6.3% greater loss in value than that of their 3bdrm neighbors.