The Market Statistic That No One Looks At
Real Quick Real Estate - The Market Statistic That No One Looks At
I want to inform you about an important housing market signal to look for.
Percentage of closed price to original list price.
For example: if a house is first listed at $350,000 - but the buyer negotiates it down and gets the keys at $340,000 - then that reflects a 97.1% closed price to list price.
Why is this important? This shows:
(1) changes in the housing market as sellers are lowering their home price to sell
(2) how much buyers are negotiating off home prices
Percentage of closed price to original list price - 2021 and 2022
|
Month |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sept |
Oct |
Nov |
Dec |
|
2021 |
99% |
99.1% |
100% |
100% |
100% |
100.6% |
100.7% |
100% |
100% |
100% |
100% |
100% |
|
2022 |
100% |
100% |
100.7% |
101.3% |
101.4% |
100.3% |
100% |
99.3% |
98.1% |
97.3% |
96% |
95.2% |
*Now buyers are getting homes almost 5% less than what the home was originally listed for.*
Because of this, it could be a great time to purchase a home even with higher interest rates.
If you see this and are thinking it’s not a good time to sell your home….
Keep in mind, while it hurts you on the selling side, it helps you on the buyers side.
If you would have sold a few months ago, yes, you would have likely come out stronger, but you also would have paid more for your next home.
Jake
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