0

I've recently noticed lots of "For Sale" signs in my neighborhood, I'd venture to guess as high as 10%, which seems like a significant turnover. Aside from efforts by sellers to increase curb appeal (keep lawn manicured, painting, pressure-wash), does high turn over significantly affect neighboring property values?

1
  • Turnover per SE, no. If the houses are selling for significantly more. That matters. If they're selling remarkably quickly, that suggests you're in a good location which may get a better than average price. Of course either of both of these may already be factored into the price you paid and/or the appraisal.
    – keshlam
    Commented Mar 24, 2016 at 19:12

1 Answer 1

2

I think Keshlam is on the right track. House prices are set by demand and supply. When you see a lot of for sale prices, you are only observing the supply, not the demand. You need to take a look at actual sales to see how these changes are affecting you.

Case 1: Lots of houses are on the market and staying on the market or reducing prices. This means there is more supply of than demand for houses. This will drive your house price down. If you intend to sell soon, this is a bad thing. Otherwise it shouldn't bother you too much (it might reduce your property tax bill).

Case 2: Lots of turnover. Houses are going onto the market quickly and selling just as quickly. This is a good thing for you potentially because it means there is high liquidity in your market. It means if you want to sell you can pretty much get a good price even if you are in a rush to do so.

The last case is that lots of people want to move to your neighborhood and there aren't many houses up for sale. This would be great for you but doesn't seem to be the case based on your question.

You can get an idea of what the trend is and how frequently houses are reducing prices by taking a look at Zillow or other similar services.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .