Home Sales Success Rate Stable At 42%

It is time again to review a statistic that we have been maintaining at the Tallahassee Real Estate Blog for quite some time, and it is the measurement that we refer to as the “Home Sales Success Rate.” It is simply a measurement of the homes that leave the market either as successful home sales, or as failures due to a lack of a sale. Recently, the one-year trend has been bumping along after dropping from a two-year high reached around this time last year.

Home Sales Success Rate Stable At 42%

By dividing the total number of closed sales by the total number of new listings, over a specific time period, we can show a trend that gives a hint at how many homes (as a percentage of the total) are actually selling. Conversely, we can measure the home sales failure rate as the total number of listings that failed to sell over the past 365 days divided by the total number of listings taken during that same period of time.

• Success: 42%
• Failure: 58%

Home Sales Success Rate Too Low For Needy Sellers

So, in simplified terms, we can say that over the past year, roughly 42% of the people marketing to sell a home in Tallahassee actually sold, while 58% of the listings taken failed to sell. The success trend currently appears to be on the rise, though we suspect the normal seasonal surge of new listings is just hitting the market and might put a damper on this observation.

The failure trend once rose to 70% in June 2009 and it might be heading back to that level when these listings enter the market. We will keep a close eye on these activities because this trend analysis points the way to the speed in which the recovery will take, and the home sales success rate must rise for this to occur.