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Are Homes Really Selling Faster In Westwood? A reader's comments are discussed...

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I had written a post a few days ago regarding homes selling at a faster clip than earlier in the year and that I felt the market has definitely been busier lately as evidenced by many short listing periods and multiple offers. I also posed the question that maybe sellers' were starting to price their homes more competitively in order to get quicker sales. A reader posted a comment on that post I thought would be good to share with everyone. The reader pointed out that there is a statistical flaw with only pulling data from homes listed since August 1st, as I did on that post, since they all will have a short DOM. Here is the reader's comment....
 

"I think there is statistical problem with this analysis.. You can get almost anything you want if you present the data this way. Here is why...
If you want to make a case for even shorter times on market ,all you need to do is look at homes in escrow that were listed since October 1 instead of August 1
If you want to make a case for even longer times on market , then just look at all homes in escrow that were listed since May 1 insead of August 1
The point is that by choosing a cutoff date of homes listed since August 1 which then went into escrow, the data is cherry picked for homes with short market times. Homes with long market times are being excluded."


Ron
Here was the response I started writing to Ron's comment...

Ron your point is well taken and I agree with you regarding just taking a sample from that arbitrary date of August 1st. It's definitely something I thought about as I wrote that post.  However, the point I am showing here is a definite shift in the recent activity level in the Westwood market that has resulted in more and more homes selling with a faster days on market than earlier in the year. The reason I picked the last 4 months was to take a snapshot in time...a more current time and see what's happening. Not to go back 5 or 6+ months, because that was a different market. 

But since that perspective has some flaws, I have some more numbers for you that I quickly pulled up right now to further illustrate my point. In the first 6 months of the year (Jan 1st-June 30th 2009), we had 7 homes close with 10 days or less on market, 11 total close under 20 days and 13 total close with a 30 days or less on market.  Compare that with the last 4 3/4 months (July 1st-Nov 19th 2009), we had 28 close or pending with 10 days or less on market, 43 close or pending with 20 days or less on market and 52 close or pending with 30 days or less on market.

In my view, those last stats further support the point I was trying to make. And those numbers will be further lopsided since we have another month + to compare 1st half to the 2nd half of the year.

Lastly, I will say Ron that your main point rings true, you can make statistics bend most anyway you want to make your point. But being in the trenches on a daily basis, just looking at these numbers only backs up what I have been seeing and feeling for several months.