The number of expired listings in a market area was 250 in the prior period and 285 in the current period. What is the percent change in expired listings?
Correct Answer
C) 14 percent
Change = (285 − 250)/250 × 100 = 14%. Use the same population, period and price/listing definition throughout. Common errors: dividing by the current figure instead of the prior figure gives 12 percent; reporting the current level as a percentage of the prior level gives 114 percent; misplacing the decimal (×10 instead of ×100) gives 1 percent.
Why This Is the Correct Answer
Option C is correct because percent change equals (285 - 250) / 250 x 100 = 35 / 250 x 100 = 14 percent. The prior period is the base for a change measured from it. A rise in expired listings can signal weakening demand or overpricing.
Why the Other Options Are Wrong
Option A: 1 percent
Option A, 1 percent, comes from misplacing the decimal: (285 - 250) / 250 x 10 = 1.4, about 1. Multiplying by 100 gives the correct 14 percent.
Option B: 12 percent
Option B, 12 percent, divides by the current figure instead of the prior: (285 - 250) / 285 x 100 = 12. Change from the prior period uses the prior figure as the base: 35 / 250 x 100 = 14 percent.
Option D: 114 percent
Option D, 114 percent, reports the current level as a percentage of the prior: 285 / 250 x 100 = 114. The change is 114 - 100 = 14 percent.
New Minus Old, Over Old
Percent change is new minus old, divided by old, times 100.
How to use: Use 'new minus old, over old' to set up any period-to-period percent change.
Exam Tip
Divide by the starting period's figure, and remember that a result like 114 percent is a level, not a change.
Common Mistakes to Avoid
- -Using the current figure as the base
- -Reporting the ratio of levels as the change
- -Multiplying by 10 instead of 100
Concept Deep Dive
Analysis
This question tests percent change: (current - prior) / prior x 100. With 250 prior and 285 current expired listings, the change is 35 / 250 = 14 percent. The distractors come from using the wrong base, reporting the ratio of levels, or misplacing the decimal.
Background Knowledge
Percent change compares a new value with an earlier base value. Market analysis often tracks changes in counts such as expired, withdrawn and pending listings. Form 1004MC research instructions mention analyzing pending sales and expired and withdrawn listings as part of market research.
Real-World Application
An appraiser finds that expired listings rose from 250 to 285 between periods. The 14 percent increase, along with other indicators, may suggest softening demand or listings priced above the market.
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