The nature of the real estate market is a tricky one and one that takes much research to truly try and understand. Many agents track the number of homes that have sold in a certain area, or the number of homes that are listed.  But, only a select few track the number of homes that are currently “pending” or under contract.  We do just that on a weekly basis, we track what we call “Pending Ratios” which is the number of homes in a certain price range that are listed, compared to the number in that same range that are currently under contact.  For example, if there are 100 homes on the market between the price range of $250,000-$300,000, and 10 of them are under contact the pending ratio would be 10%.

Why are Pending Ratios important?  The number of homes under contact compared to the number of home currently listed is a very important factor in considering what negotiating power you as a buyer have, or where your pricing needs to be as a seller. If you are a buyer looking for a house and the pending ratio is low, that’s great news for you; it means more homes for you to choose from in your range and more negotiating power.  If you are a Seller and the pending ratio is high that is great news for you it means there are lots of potential buyers in that range and few homes currently available.

By studying and reading into the pending ratios we are able to judge the state of the “current” market, what people are buying now, not what they have bought in the past, or are going to buy.  Pending ratios are a great way to stay up to date on current consumer confidence and how people are feeling about the market on a weekly basis.

To talk about Bellingham or Whatcom County’s current pending ratios don’t hesitate to call us at 1-888-713-3056 or email us at Info@JohnsonTeamRealEstate.com.  Pending ratios are also posted here on weekly basis.