The real estate market is a dynamic environment that is influenced by various factors. As a buyer or seller, it is crucial to understand the correlation between different real estate metrics to make informed decisions. In this analysis, we will explore the correlation between months supply of inventory, 12-month change in months of inventory, median days homes are on the market, list to sold price percentage, and median sold price.
Starting with the months supply of inventory, which currently stands at 3.52, this metric indicates the number of months it would take to sell all the available homes on the market if no new listings were added. A lower months supply of inventory generally signifies a seller’s market, where demand is high, and supply is limited.
Moving on to the 12-month change in months of inventory, which shows a positive change of 4.76%. This indicates an increase in the number of months it would take to sell all the available homes compared to the previous year. A positive change suggests a shift towards a buyer’s market, where supply is increasing, potentially giving buyers more options and negotiating power.
Next, we have the median days homes are on the market, which currently stands at 32. This metric represents the average number of days it takes for a home to sell. A lower median days on the market is generally preferred by sellers, as it indicates a faster turnover and potentially higher demand for properties.
Moving on to the list to sold price percentage, which is at 97.1%, this metric shows the ratio between the listing price and the actual sold price of homes. A higher percentage suggests that homes are selling close to their asking price, indicating a strong market where sellers have more bargaining power.
Lastly, we have the median sold price, which is $320,945. This metric represents the middle point of all the sold prices, indicating the typical price at which homes are being sold. Understanding the median sold price can help buyers and sellers gauge the overall market value of properties in a given area.
Now, let’s explore the correlation between these metrics. A lower months supply of inventory, coupled with a shorter median days on the market, suggests a seller’s market with high demand. This can potentially lead to higher list to sold price percentages, as sellers have more leverage in negotiations. However, the positive change in the 12-month months of inventory indicates a shift towards a buyer’s market, which may lead to more competitive pricing and potentially lower list to sold price percentages.
The median sold price is influenced by various factors, including supply and demand dynamics, economic conditions, and location. Higher demand and limited supply can drive up the median sold price, while an increase in inventory may put downward pressure on prices.
In conclusion, understanding the correlation between these real estate metrics can provide valuable insights for both buyers and sellers. While the current market conditions lean towards a seller’s market, the positive change in months of inventory suggests a potential shift towards a more balanced market. It is essential for buyers to be aware of the median days on the market and list to sold price percentage to make informed decisions, while sellers should consider the median sold price to determine a competitive listing price. By keeping a close eye on these metrics, buyers and sellers can navigate the real estate market with confidence.
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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