the listing reality gap

I’ve been watching the numbers over several months now and one thing in particular I’ve noticed is a “reality gap” between what houses are being listed at and what houses are actually selling at. I call it the “listing reality gap”. It has definitely gotten smaller over time but it is still substantial. Here are the current numbers for the 92880 zip code. Notice the gap between the average sales price and the average listing price. Yes the time frames are slightly off but you get the idea…:

 

 

 

 

 

 

 

 

 

 

One could predict that a wider gap would mean future price drops and a narrower gap would mean price stabilization. This is somewhat obvious but it is interesting to see it in action and to see banks and resellers coming to terms with the reality of the true market values of their properties.

~ by razor on October 22, 2008.