Hi Friends, as buyers and sellers in the real estate market, it is crucial to understand the correlation between various metrics that can greatly impact your decisions. Today, we will delve into the relationship between the months supply of inventory, the 12-month change in months of inventory, the median days homes are on the market, the list to sold price percentage, and the median sold price.
Let us first focus on the months supply of inventory, which currently stands at 2.39. This metric represents the number of months it would take to sell all existing homes on the market if no new listings were added. A lower value indicates a seller’s market, where demand outpaces supply, resulting in higher prices and shorter selling times.
Now, let’s consider the 12-month change in months of inventory, which shows an increase of 0.42%. This reflects the percentage change in the supply of homes over the past year. A positive change suggests that inventory levels have risen, potentially indicating a shift towards a buyer’s market. This could mean more options for buyers and possibly more negotiating power.
Moving on, we have the median days homes are on the market, which currently stands at 30. This metric represents the average number of days it takes for a home to sell after being listed. A shorter duration signifies a faster-paced market, indicating high buyer demand and potentially multiple offers on properties.
Next, we have the list to sold price percentage, which sits at 97.7%. This figure represents the ratio between the listing price and the final sold price of a property. A higher percentage suggests that sellers are receiving offers close to or even above their asking price, indicating a strong market where buyers are willing to pay top dollar for available homes.
Finally, let’s discuss the median sold price, which currently stands at $340,000. This metric represents the middle point of all home prices sold in a given period. It provides insight into the overall price trends in the market. A higher median sold price indicates a market where properties are selling at higher values, potentially reflecting strong demand and limited supply.
Now, let’s draw the connections between these metrics. A low months supply of inventory, combined with a positive change in the 12-month inventory, suggests a competitive market with increasing options for buyers. This is further supported by the relatively short median days homes are on the market, indicating high demand.
Additionally, the list to sold price percentage of 97.7% showcases the willingness of buyers to meet or exceed asking prices, indicating a strong seller’s market. This is further reinforced by the higher median sold price of $340,000, indicating rising property values.
In summary, these metrics reveal a market with low inventory, strong buyer demand, and increasing property values. As a buyer, it is important to act swiftly and be prepared to make competitive offers. As a seller, you can expect to receive offers close to or above your asking price, but it is still crucial to price your property strategically to attract the most favorable offers.
We hope this analysis has shed light on the correlation between these real estate metrics and provided valuable insights to our esteemed buyers and sellers.
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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