Phoenix Market Trends - Listing Success Rate as of Feb 11, 2013
The Listing Success Rate is a big part of determining how a home will sell in the current market. If similar homes have sold previously on the market, there are some key selling points that could make the latter property more appealing - giving that property leverage and a higher rate of success when it is listed. As each home sells, the higher the value goes up for future homes motivated to sell - also increasing the values of the homes that are located around the homes that have sold at higher prices.
When the Listing Success Rate is higher, that means that homeowners or investors are just as motivated to sell homes - which means there is less compromise or negotiating during the sale process as there are more buyers. This is a good sign, as the market gets better, there is more value given to properties currently on the market allowing these properties to also have a chance to sell at a price closer to the worth of the home.
As we can see above, the 4 different kinds of transaction types each have their own dynamic within the industry - but, each tells a story of the situation within each type. For example, HUD transactions hoover between 98% and 100% throughout the past 12-month period. On the surface, this indicates that this transaction type is highly successful and that maybe a lot of people are going in this direction. In fact, this transaction type is extremely difficult with regard to evidencing accounts and very strict underwriting. The fact that there is more Listing Success with this may also be attributed to the fact that less people are trying for these transaction types because of the level of difficulty.
Normal transaction types have a more realistic expectation as far as most go through the entire sales process and the transactions are typically completed - ranging from 66% to 80% throughout the past 12-month period. This is because there are a significant amount of people who complete the process, but there are still a select population of this transaction type that cannot complete the process for whatever reason - lender re-evaluation, buyer cold-feet, lack of buyer resources - the list goes on. However, the fact that a majority of the sales in this transaction type are successful is significant.
Next is the REO (Bank-owned) transaction type. The great thing about banks that own homes are that they can sell the homes that have been foreclosed on for significantly lower prices - they are typically out to re-coup any monies lost with the previous loan - so, most buyers can steal these homes. Even though there is not as high a success as in HUD transactions, there is still a significant amount of sales that close because of two reasons - the first mentioned previously, they are selling the homes for less so more people qualify and they issue the guidelines for the sale, so the banks can help the process complete seamlessly. Still, minus a significant dip to 88% in December 2012, REO transactions were strong throughout 2012 - ranging from 94% to 98%.
Finally, the Listing Success Rate for Short-sale transactions had a consistant and steady climb throughout 2012. The Real Estate Market in the Valley of the Sun experienced a tough January 2012 starting out the year with 48% Listing Success Rate within this transaction type. As the year progressed, the rate climbed up to 76% in June 2012. The reason that the Listing Success Rate is so low with this particular type is because of a couple reasons. First being that the sales process is extremely tedious and repetative with regard to producing and maintaining documentation for the lenders involved. Also, this process takes a very long time to complete (sometimes up to a year) - so, they may not be included in the final numbers for quite a few months.
The good news is that homes are selling in the Valley of the Sun. The Real Estate market is moving in a positive direction - not only here in Metro Phoenix, but across the nation. You might be asking - "How does this apply to me, Banana?!" Well, it is a GREAT TIME TO SELL YOUR HOME if you have been considering that option. It is definitely a Seller's market, as homes that go on the market in Metro Phoenix typically have Listing Success - as evidenced in the chart above. Give Anna Banana a call today - we can prepare and review your FREE PROPERTY ASSESSMENT REPORT that will give you the insight to what your home or investment property might yield.
Phoenix Market Trends - Listing Success Rate as of Feb 11, 2013
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