Sold Ratios for Residential Real Estate in Northwest Florida
Sold Ratios for Residential Real Estate in Northwest Florida
Explore the Full Dashboard on Tableau Public
Project Background
Following the 2020 - 2022 sellers market boom, real estate brokerages in Northwest Florida are experiencing new and unique challenges with homes expiring at a 20-30% higher rate in recent years. Lower sold ratio's can result in millions of dollars per year in lost revenue, but data driven insights can be a powerful tool to overcome this challenge and allow brokerages to be more purposeful with their listing investments and lead generation budgets to reduce losses and increase profitability.
Data
This data includes residential real estate home listings in Escambia and Santa Rosa counties listed between November 2023 and September 2024. Excluded categories include homes under $100k, lots, and boat slips.
Analysis
Utilizing SQL, Tableau, and Excel, i've created an interactive dashboard that displays sold ratio by price category and zip code.
Key Insights
$750k+ listings have a 20.9% less chance of selling than $250k-$500k listings, 52.9% compared to 73.8% respectively.
Lowest sold ratio zip codes:
32502 - 47.8%
32505 - 58.4%
32507 - 55.9%
Highest sold ratio zip codes:
32571 - 80.1%
32504 - 78.8%
32514 - 76.7%
Applications
Brokerages investing in lead generation in the lowest performing zip codes can divert those funds to higher performing zip codes. For instance, pausing investment into 32502 (47.8%) and instead investing in 32571 (80.1%) would increase sold ratio by 32.3%
This dashboard can be used on a case-by-case basis when deciding whether or not to list a home. For instance, an $800k listing, 2% listing commission, in 32507 may be tempting at first, but after configuring the dashboard it reveals an only 46.9% chance of closing. Investing up to $2,000 up front for photography, staging, lead generation, etc. for a 46.9% chance of earning $16,000 may be too high a risk in this case.
When preparing for listing appointments, agents can utilize this tool to find the minimum commission needed to justify the risk profile of that particular listing. For instance a 2% listing side commission for a $300k in 32514 would have a 73.2% chance of closing which may be favorable enough to justify the discounted commission. In contrast, a $200k home in 32502 has just a 34.2% chance of selling which may be too high of a risk to justify spending the up front cost needed to list the home such as photography, signs, marketing, etc.