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My team and I religiously track the real estate market in search of information that will give us a competitive advantage and help our clients. On a biweekly basis we take each of our listings and monitor the # of properties in direct competition; how many new properties have been added to the market; how many price reductions; # of properties under contract; # of properties closed; etc. Over time trends emerge...but I have never seen a trend like the one I discovered yesterday.
Keep in mind that over the past 5 years it has been our primary goal to market properties better than the competition and simply get them under contract. 95% of the time these properties would go through the motions and successfully close. Times have changed.
As an example I would like to show you the Groton residential single family market in the price range of $250,000 -$300,000. Over the past 4 months there have been a total of 52 properties that have gone under contract. Of those 52 properties 14 have closed. This is a 27% close ratio in comparison to a former ratio of 95%!! 4 properties in that range are still under contract at this time. Many of these properties have been withdrawn or are in pre foreclosure-foreclosure status. The Montville market is at a whopping 18% close ratio.
It is becoming more and more difficult to find qualified buyers that are capable of meeting the new lending standards and are willing to see a transaction through without being scared off by the National Media at some point throughout the transaction.
Thankfully unique properties such as waterfront, equestrian, or special use properties are being targeted by the wealthy, overseas investors, or bottom feeders with their eyes on an opportunity. This will keep diversified agents fed through the tough times.
More to come…
