“New listings disrupt the market for buyers and sellers” may initially seem like an odd statement until you consider this.
Generally speaking, buyers can only consider homes that are listed / on the market. Once a listings has been viewed online or in person the buyer goes into a sleep mode unless they are ready to take some action; i.e., schedule a showing (if viewed online) or second showing, proceed with an offer or put it on their watch list.
With that said, a new listing suddenly creates a new dynamic, but only for a short period of time (perhaps 3 weeks max).
Possible scenarios. A new listing may bring new buyers into the market or wake buyers from their sleep mode who are still pursuing the ideal home or the deal. It may prompt buyers with a short list of potential homes to swap one property for another. It could cause a buyer with a contract on a home to terminate in favor of the new listing. And, it could even drive a seller who has been long on the market to Withdraw after seeing a better home at a lower price hit the market.
A pebble dropped into pond creates a wake that diminishes over time. In real estate, a new listing is the pebble, and buyer interest is the wake. Sellers need to prepare and have a strategy to go under contract during this period of disruption in order to net more at closing in less time.
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