Market Forces

Understanding Your Market

All across the fruited plains real estate agents log on to their computers punch in a their secret agent number and watch as the world wide web streams market data from a secure server in cyberspace to their warm well lit offices. Let’s take a look at the different types of data and how it affects buyers, sellers and real estate professionals.

Newly matched listings and listings ‘back on market’ offer the prospect of a sale for agents an brokers working with ready willing and able buyers. For a buyer, newly matched listings serve as an opportunity to pounce on a fresh listing. For a seller, a newly matched listing (to their property) in their MLS area serves as more competition.

For agents, newly expired listings offer the prospect of a new client. Agents may consider contacting that property owner to consider a re-list. Although a lucrative endeavor, it’s extremely competitive. At times sellers of expired listings are not happy with their previous agent for a variety of reasons, some valid, and some based on unreasonable expectations, a lack of understanding, or a unwillingness to trust their hired professional. Expired listings generally reflect prices other sellers could not obtain.

The previous days cancelled listings also come streaming through the agents high speed connection. Buyers could view this category as a missed opportunity and sellers are left with less competition. Cancelled listings are fewer today than in the past. This category of listing status has undergone changes due to NWMLS policy. Many agents had previously abused this listing status to attract buyers to a old property listing by simply canceling and re-listing. Today, a significant change in the property and or price change of 5% or more must take place in order to cancel and re-list. Good job NWMLS!

Last night there were 465 price reductions across the NWMLS which puts pressure on existing home seller to remain competitive. An increase in value may not be possible for those with little or no wiggle room. For those who have flexibility and wish to stay competitive being aware of your competition is prudent and strategically wise. For buyers, better value.

Pending and sold properties also add to the data real estate professionals see on a daily basis. Pending properties are those sellers who have found willing buyers and are undergoing the closing process. Sold properties are ones that have completed the closing process and are in fact closed and recorded. Sold properties are the only true indication of value. Think of it this way. The active market (available properties) indicate the price sellers want for their homes. The sold market indicates what sellers are actually getting for them.

Brokers, agents, and sellers across the fruited plains must recognize these factors and understand how they impact the market. Sometimes it’s positive. Sometimes it’s not. Understanding market forces help sellers remain competitive and for buyers, the price reductions and increased available housing translates to more choices and better value.