Home Sales Failure Rate Dropping January 24, 2010
The rate at which homes are leaving the market, due to the failure of the home owner to sell a home, is dropping. The level once reached 85%, but now is trending to 79%.
This "failed to sell" trend is a measurement of the past 365 days worth of homes leaving the market due to failure to sell (canceled, withdrawn, expired) divided by the number of homes that came onto the market during that same 365 day period. While the absolute value of this measurement does not have a significant meaning, we can derive the trend of "difficulty" in selling a home.
One conclusion that one might reach after viewing this information is that homes are more difficult to sell today than they were exactly one year ago, but that might not be exactly true. Last year at this time, the failure rate was around 72%, but there is another factor to consider. Tomorrow, we will look at the home sales success rate and see what it has to say.