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Are Your "Short Sale" number of Units Under Contract skewing your Market Statistics?

By
Real Estate Agent with Florida Supreme Realty SL514814

Number of Units Under Contract in Collier County, FL

I find that there is no longer a rationale to include this information in my typical reporting and especially the supporting data.  The number will not be on the downturn for any length of time in the near or far future for that matter.  What this represents to me is the glut of homes which remain active but are pending short sales which may have been under contract as long as 26 months ago and remain here statistically messing with our numbers.  I'm am not saying to ignore them only that their existence tends to undermine current market assessments.  To alleviate some of the effect this has when persons are attempting to determine the strength or weakness of a market it might be desirable to create a new field to identify this trend.  I'll call it DUC (Days Under Contract), when used simultaneously with DOM it might weed out false telltails about activity in local markets.  With roughly 50% of sales being either Short or REO it's just one more quotient to use when determining market strength.       

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Comments (2)

Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Especially in your area I understand your concern. I think it is with every MLS right now.  Good points. I don't see the need to go back to 2007, even 6 months would be much more current.

Apr 27, 2010 05:46 AM
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Lyn, because of our seasonality the longer trending seems to work best.  I will tend to shorten the time frame with customers who are more familiar with our market and understand it's movements and why.  The second home market can be a fragile one.  The cooler winter here this year proved that to be true.  Thanks for the comment!

Apr 27, 2010 10:08 AM