Market Statistics: How to Determine the Percentage of Homes Sold

By Diane Ives

MRIS, March 31, 2008–Have you ever wondered about the odds of selling a given home? MRIS has a tool that you can use to figure this out-the Real Estate Trend Indicator reports available on www.mris.com.To figure out the odds, begin by calculating the percentage of homes that have sold within a given timeframe.

- Log into www.mris.com, hover over Reports, click on Market Statistics.
- Choose either the Real Estate Trend Indicator for county/region or the ZIP Code report.
- Obtain between 3 and 6 months’ worth of data (print the months that you want to examine).
- Discover how many listings sold in the last 3 to 6 months.
- Find the number of new listings that came on the market during the same period. (The number of new listings can be found in the box on the lower right corner of the report. Note that you will need to add the figures yourself in order to obtain total sold and total new listings.)
- Divide the number of sold listings by the number of new listings.

Calculating this figure will provide the percentage of listings entering the market that actually sold.

Example: In a chosen ZIP Code, 18 listings sold and 180 listings came on new. That means the odds of a new listing selling is 10% or 1 in 10 listings (18 divided by 180).

The formula is: Homes Sold for the time period ÷ New Listings during that time period = %Sold

From this point on, obtain this figure on a monthly basis. Then you will be able to recognize a trend. Is the percentage increasing or decreasing? Knowing this figure will help you recognize when the market is stabilizing, rising or falling.

Diane Ives, CRB®,CRS® is an instructor with MRIS.

To share feedback on this article, contact: Communications@mris.net.

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