Who cares? You should (if you are considering buying or selling a home, that is). The percentage of homes in escrow is a very telling indicator regarding the state of the market. For example, a couple of years ago, certain parts of Marin County experienced an "Extreme Sellers Market" with over 55% of homes in escrow at any given time. Today, those same areas are likely to be in a "Neutral" market (e.g., about 30% of homes in escrow). Meanwhile some market segments in Marin are, in fact, "Extreme Buyers Markets." Of course, whether it is a Seller's or Buyer's market has a great impact on negotiations. As a buyer or seller, it is important to understand and appreciate the importance of the "Percent of Homes in Escrow." If you have any questions or would like to discuss this concept and how it impacts you, please e-mail me at Kyle@NorthBayRE.com.
Below is a guide to interpret the numbers:
- 0 - 10% of Homes in Escrow -- Extreme Buyer's Market
- 10 - 20% of Homes in Escrow -- Strong Buyer's Market
- 20 - 30% of Homes in Escrow -- Buyer's Market
- 30% - 35% of Homes in Escrow -- Neutral Market
- 35% - 45% of Homes in Escrow -- Seller's Market
- 45% - 55% of Homes in Escrow -- Strong Seller's market
- 55% - 100% of Homes in Escrow -- Extreme Seller's Market
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