Real estate listing prices may not change as frequently as mortgage rates do, but they paint similar pictures of the state of the real estate market. A quick browse through the listings at your trusted real estate listing site like Keller Williams Realty will tell you how the local market fares today. That’s how the story goes, at least.
One thing’s for certain, however; the sale period for the average home is anything but days or weeks. It’s not unusual for homes to remain unsold for almost a year (though you may want to ask why this is happening in the first place). By that time, the house would have made several price changes based on demand and supply. The Wall Street Journal’s Conor Dougherty writes:
If there are a lot of homes on the market and they aren’t selling very fast, the final sales prices are likely to go down. Vice versa if supply is tight and sales are swift.
Researchers found out that it’s possible to get at least a rough draft of prices of quality homes for sale in College Station, TX and elsewhere. Two methods come to mind. First, the Federal Reserve Board (FRB) used the Case-Shiller home price index. Second, a joint effort used tightness of the housing market as a basis.
It pays to know that a home’s real estate listing price may not necessarily be its final price. According to the FRB study, the seller stands little to gain by publishing the property’s sale price, at least right away. It takes several months after the sale before the price of the unit gets published.
In any case, this does not provide the seller an excuse to tack a higher price tag on the property. Price fluctuations may rise to 20 percent or more, but mispricing, says Truila’s Michael Corbett, can put the home on the listing for too long. The seller may consequently get left behind by the real estate market and be forced to sell, if at all, for a lower price.
As for the buyer, the combination of listing prices and real estate market data, for the most part, helps determine an adequate, if not accurate, sale price. Given the complicated math that comes with using real estate market data, you’ll certainly need a trained and certified agent from a reputable agency like the Traditions Realty Team who can help you get a good deal on homes for sale in College Station, TX.
(Source: “Can Listings Be Used to Predict Home Prices?” The Wall Street Journal, March 4, 2014)