Active, Cancelled, Closed Sale, Pending Sale, Terminated, Temporarily Off Market, Withdrawn, and Expired.
Active – Available, Backup Contract – Call Listing Agent, Cancelled, Closed Sale, Pending Sale, Terminated, Rented, Temporarily Off Market, Withdrawn, and Expired.
Each of these categories represent an integral component of pricing structure for any residential real estate market in any given area.
Listing status changes correlate with supply and demand factors. This essentially helps create pricing structure. Newly inputted active listings will both impact and be impacted by current circumstances in pricing structure, investor perception, and/or supply and demand factors.
The plotting of these events could provide clues as to where the markets might be headed.
Technical analysis, through the use of charting, might offer hints as to directional movement with respect to these listing status changes and other human attributes difficult to ascertain otherwise.
Through the use of simple charting, investors could better understand price, making it less likely to overprice an active listing, or — for that matter — overpay for a listed property.
Listing Status Changes
1) A rise in “backup contracts” indicate a rising market (scarcity of goods and services).
2) A rise in expired listings indicates a falling market.
3) A rise in cancelled, terminated, or withdrawn listings indicates a market that’s rolling over, or declining.
4) A rise in active listings indicates a market that is either topping, beginning to decline, or declining.
5) Heavy turnover without further price progress indicates resistance (if the market is nearing a top) or support (if the market is nearing a bottom).
What to do in a real estate bear market (buyers market).
1) Don’t chase new listings. Let them come to you.
2) Aged listings represent opportunity.
3) Aged listings more accurately determine market value. This can be seen by comparing an active, aged listing with a comparable property that recently closed. The older the listing, the smaller the disparity between closed sales of comparable properties and the subject property.
4) Aged listings have an inherent quality which more accurate determines pricing structure.
