Did you know that the term ‘foot traffic’ is more than just a buzz word about how many people walk through a home that is listed for sale? This week as the market heats up, we wanted to provide you with a data-driven definition of what foot traffic is and why it matters to you!
#1: According to the National Association of REALTORS (NAR)®, foot traffic has a strong correlation with future contracts and home sales. Thus, it can be viewed as a peek ahead at sales trends 2-3 months into the future.
#2: Foot traffic data can vary greatly from region to region and can be impacted by inventory levels. While your own local agent (like Homes of Silicon Valley!) can provide you with foot traffic data for homes in your neighborhood based on our own market activity, national foot traffic data is compiled by Sentrilock, LLC.
Sentrilock, LLC lock boxes are used in approximately 1/3 of home showings across the nation; this company provides monthly data to NAR® based on the number of properties shown by a REALTOR®. In tighter markets where properties are moving quickly, buyers may only view a property once before making an offer, whereas when inventory is high, they have more time to view a property multiple times.
#3: The latest foot traffic data from NAR®, as of January 2020, showed a measurable increase of 6.2 points from the prior month. The month-over-month increase has been attributed to strong job growth and low mortgage rates – motivating buyer forces. We can also tell you that our 3 recent listings in Willow Glen, Communications Hill and Morgan Hill experienced high levels of foot traffic and went pending in record time. ;)
Feel free to reach out for more info on how Silicon Valley micro markets are performing compared to national trends as a whole! We also encourage buyers to consider foot traffic as a measure of their competition, while sellers should take into account foot traffic in their immediate neighborhoods as one factor in the how in demand your home and location could be, and how that could impact your ROI.
All our best,
Homes of Silicon Valley