What is street phenomena and why does it happen?

Have you ever noticed that on occasion two or three homes go up for sale on the same street within a few weeks of each other?

There’s a name for it, and it’s called “street phenomena.” If you haven’t heard the term, you have most certainly been a witness to it.

“Street phenomena” can be quite beneficial for sellers, as buyers that did not have an initial interest in their home will view it for comparison reasons and can easily end up purchasing the one house that was initially ruled out.

However, it can also raise a red flag to home buyers; and it is important to find out why these homes are for sale.

The three main reasons for street phenomena are sheer coincidence, an “event” that affects the neighborhood or seller ego.

Sheer coincidence — There is 1 nothing to be concerned about if this is the case. Some areas are more transient than others for a variety of reasons.

Some type of neighborhood 1 event — A few possibilities are that school boundaries may have been redistricted or a special assessment is looming. It could also be that some homeowners got concerned by an event in the neighborhood. You’ll want to find out what, if that is the case.

Seller ego — This is by far the 1 most common, and this is the scenario. Homeowner A lists their home with a Realtor. Homeowner B sees the for sale sign go up, and inquires as to how much Homeowner A is asking for their home. Homeowner B thinks to themselves, “If Homeowner A can get that price for their home, we can certainly get this price for our home. Let’s sell our house, too.” Then Homeowner C finds out what prices those homes are listed at and joins the fray.

There are pluses and minuses to the street phenomena effect when selling or buying a home. Do your research.