When a home goes up for sale in a neighborhood, there’s a strong chance that another one will follow.
This phenomenon often called the “listing contagion effect,” suggests that one home listing can spark a chain reaction, leading to more listings in the same area.
Why Does This Happen?
Market Awareness
Many homeowners are uncertain about when to sell. When they see a neighbor list their home, it raises awareness about local market activity.
Confidence Boost
If a home in the neighborhood gets listed at a high price, other homeowners may feel encouraged to test the market themselves.
Life Cycle Similarities
Many neighborhoods develop simultaneously, meaning homeowners may reach similar life stages—upsizing, downsizing, or relocating.
Competitive Motivation
Some homeowners may be waiting for the right moment, and seeing a neighbor list might push them to act before market conditions change.
How Real Estate Agents Can Leverage This Trend
Just Listed & Geographic Farm Marketing
Send direct mail postcard campaigns, emails, and post on social media to let neighbors know a home is on the market.
Door-to-Door Prospecting
Knock on doors, drop off flyers offering free home valuations, or leave Doorhangers behind.
Agents can capitalize on this natural momentum by strategically reaching out to homeowners when a listing appears in their farmed neighborhood.
If one home is listed, there’s a good chance another will be soon—be ready to seize the opportunity!
WATCH THIS VIDEO: See what happens when an agent consistently markets in a specific neighborhood for eight weeks.