Hi Friends, thank you for joining me today as we delve into the fascinating world of real estate metrics. Today, we will be exploring the correlation between various key metrics that are of great significance to both buyers and sellers in the market. By examining these metrics, we can gain valuable insights into the current state of the real estate market and make more informed decisions.
Let us begin our analysis by looking at the first metric: Months Supply of Inventory, which stands at 5.03. This metric tells us the number of months it would take to sell all the available homes on the market if no new listings were added. A lower value indicates a seller’s market, where demand outpaces supply, while a higher value suggests a buyer’s market, where supply exceeds demand. In this case, a value of 5.03 signifies a relatively balanced market, where supply and demand are in equilibrium.
Now, let us turn our attention to the 12-Month Change in Months of Inventory, which reveals a decline of 11.13%. This metric indicates the rate of change in the supply of homes over the past year. A negative value suggests a decrease in available inventory, which can be an indicator of a tightening market. In this case, the significant decrease of 11.13% implies that the supply of homes has decreased over the past twelve months, potentially leading to increased competition among buyers.
Moving on, we come to the Median Days Homes are On the Market, which stands at an astonishingly low figure of 3. This metric represents the average number of days it takes for a home to be sold once it is listed. A lower value suggests a faster-paced market, where homes are selling quickly, while a higher value indicates a slower market. With a median of only 3 days, it is clear that homes are being snatched up at a rapid pace, indicating a high level of demand and a competitive market for buyers.
Now, let’s shift our focus to the List to Sold Price Percentage, which stands at 95.4%. This metric provides insight into the negotiation power of sellers by revealing what percentage of the listed price homes are actually selling for. A higher percentage suggests that sellers are achieving a higher percentage of their asking price, indicating a strong market for sellers. In this case, the 95.4% figure signifies that sellers are, on average, achieving almost their full asking price, showcasing their favorable position in the market.
Lastly, we have the Median Sold Price, which is a noteworthy $2,800,000. This metric represents the middle point of all the sold prices in the market. A higher median sold price indicates a generally higher price range for homes in the market, suggesting a more affluent market. With a median sold price of $2,800,000, it is clear that this real estate market caters to higher-end properties.
To summarize, the correlation between these real estate metrics paints a picture of a balanced market with strong demand and decreased inventory. The low Months Supply of Inventory and Median Days Homes are On the Market suggest a competitive market where homes are selling quickly. The List to Sold Price Percentage indicates sellers have favorable negotiation power, and the high Median Sold Price showcases a market that caters to higher-end properties.
As buyers and sellers, it is crucial to be aware of these metrics as they provide valuable insights into the current state of the real estate market. By understanding these correlations, you can make more informed decisions and navigate the market with confidence. Whether you are looking to buy or sell, I hope this analysis has been enlightening and will assist you in your real estate endeavors.
If you have any questions and need help with market trends and updates, reach out to Jennifer Yoingco, REALTOR®, and her team in The Houston Suburb Group, so you can get ready to EXPERIENCE LIVING IN HOUSTON, TEXAS!
Jeanette San Luis is a blog contributor, a double degree major in BS Chemical Engineering and BS Nursing, and graduated Magna Cum Laude and Summa Cum Laude respectively. She has won numerous accolades and was named one of Houston Chronicles TOP 150 Outstanding Nurses in 2016 and 2019. In her dual role as a REALTOR®, she empathizes and understands the needs of her clients; therefore, you are in very good hands.
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