Zip Code Report
Often a home seller will believe that their subdivision, city, or school district is one of the most desireable. Perhaps yes, but it is important to know about every market that buyers get a vote. This report helps homeowners to gain insight and perspective on the reality of the market.
HomeZoop is tracking 80 zip codes in the St. Louis region. The objective is to determine which city has the most amount of properties under contract per seller on the market.
The YELLOW column represents “how many buyers are in the under contract status, for every 10 sellers still on the market.” If for example the number is 20, this would mean that there are 2 buyers for every 1 seller. This would indicate quite a bit of “pent up demand” often with 30-50% of the homes selling over the asking price. Home Prices are appreciating. Often times when a home seller is aware of these outcomes, it may be wise to consider “pushing the asking price, even if it were for a few days.”
When the number in the YELLOW column is 10, this is an indication of an average market. There is essentially 1 seller for every 1 buyer. If this occurs coming off a “hot market” this is a clear indication of a “market slow down.” Typically, homes are selling between 30-90 days. Additionally, in an average market about 20-25% of the properties will sell at the asking price or slightly over.
If for example, the YELLOW column has the number 5, it means that there are 2 sellers on the market for every 1 buyer. When there are 2 sellers for every 1 buyer, often the average Days On Market will exceed 60 days and often 120 days or higher.. This generally indicates “pricing are slightly depreciating.”
It would be wise to price your property to “get the next buyer in the market as pricing and value are dropping during these marketing conditions.”