I searched the MLS this morning (10:30 AM, August 1, 2007) to figure out how many homes in St. Louis City and County are currently listed as ACTIVE. Let me back up and explain something. Each listing in the MLS is given a STATUS.
- ACTIVE: Available to be viewed and purchased
- CONTINGENT: Has a contract but needs to go thru inspections.
- PENDING: Has a contract without contingencies and is waiting to close.
- SOLD: Sold, no longer active, not available.
(There are a few more, but I will keep this simple.)
In St. Louis City and County there are currently (as of 10:30AM) 13,158 homes available for sale. 29 of those were just listed this morning August 1. Between July 1 and August 1, 1635 were sold and 1599 were listed as contingent or pending.
So how does this affect the market? Let’s look at the Absorption Rate.
Absorption Rate: The rate at which properties in a given area able to be sold.
I am not going to count the contingent/pending properties in this calculation. Even though they are spoken for, it doesn’t necessarily mean they will make it to closing. If not one more house was listed and we were working with static numbers, given the stats above it would take approximately 8 months for this market to absorb all the available housing.
If your house is currently listed and you want to sell in 4 months, you need to price your house in the lower 50% of the range for similar properties. If you want to sell in 2 months, you need to be in the lower 25% of the range.
If you are buying, you are in a good position. You will have a lot to choose from. Be careful not become over confident. There are other people out there searching (evidently about 1600 a month) for a great place in a great spot. If the house is priced well and you want to live there be careful about throwing out a lot of low ball offers and playing games. There are other people who know a good opportunity when they see it.