Key Statistics:  Not Just Price

Which statistics are most important for getting a handle on the housing market?

Certainly, trailing price changes are important.

But, there are various such indices, and the best known ones (like Case-Shiller) track entire metro areas, not individual municipalities (let thermoalone neighborhoods).

It’s well and good that the Twin Cities housing market is up 12% the last year — but what does that tell you about prices in Edina’s Morningside neighborhood? (to pick just one example).

Other Measures

For that reason, I put much more stock in localized MLS statistics, tracking specific zip codes, customizable geographic areas, and — perhaps most importantly — unique house features such as size, style, age, and condition.

What other statistics matter?

I’d nominate these two:  1) “Cumulative Days on Market” (“CDOM”); and 2) “Sales Price as a % of Original List Price.”

In a Seller’s market like today’s, you’d expect the average CDOM to be shrinking — and it is.

Likewise, home Sellers holding the upper hand discount less than ones facing lots of competition and anemic demand (the case a couple years ago).

Or, they don’t discount at all.

According to MLS, home sellers in St. Louis Park and Golden Valley are currently getting 99% and 97%, respectively, of their original list price.

Can you say, “non-negotiable.”

P.S.:  That still doesn’t mean Sellers can over price.

Ones who do — even in a Seller’s market — usually sit, and ultimately realize less than if they’d chosen a more realistic initial asking price.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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