Our economy is slowly getting back on its feet, but the real estate market remains weak. But how weak is it, exactly, where you live? If you’re selling a home, how likely is it you’ll have to cut your offer price? And will you have to do it more than once?
Those are difficult questions, which were basically impossible to answer until today, when the launch of a remarkable interactive map created by Trulia, a real-estate listings website, makes them much easier to answer.
First, Trulia used its own listings data to crunch some remarkable sets of figures, and dropped them into a zoomable, interactive map. So in a given zip code, it shows how long a house typically goes before the owner cuts the price; the size of that price reduction; and the likelihood that there will be another reduction.
This sort of data has almost never been available before.
That latter figure is particularly interesting, because it’s basically a proxy for how weak or strong the real-estate market is in your zip code. It was calculated quite simply: By taking the percentage of houses which have gone through two or more price reductions.
Check it out; the more yellow a zip code is, the weaker the market:
As you can see, the likelihood of multiple price reductions can vary widely among neighborhoods that are even close together. And you can imagine all the reasons, ranging from poorer housing stock to overbuilding. But the bottom line is that this sort of data has almost never been available to anyone in the home market–and certainly never in such an easy, infographic form.
Click here to see the map.