Hi Friends, today we will be diving into the world of real estate metrics, specifically focusing on the correlation between several key indicators. Whether you are a buyer or seller, understanding these metrics can greatly impact your decision-making process. So, let’s begin our analysis.
Firstly, let’s discuss the “Months Supply of Inventory,” which currently stands at 2.11. This metric represents the number of months it would take to sell all the available homes on the market if no new listings were added. A lower number indicates a seller’s market, where demand outpaces supply, resulting in potentially higher prices and quicker sales.
Now, let’s examine the “12-Month Change in Months of Inventory,” which shows a significant decrease of -16.93%. This implies that the supply of homes on the market has decreased over the past year. Such a decline in inventory can indicate a stronger market, potentially leading to higher prices and faster sales.
Moving on, we come to the “Median Days Homes are On the Market,” which stands at 39. This metric represents the average number of days it takes for a home to sell. With a relatively low number like this, it suggests that homes are selling relatively quickly. This can be an encouraging sign for sellers, as it indicates a high level of demand.
Next, we have the “List to Sold Price Percentage,” which currently sits at 97.4%. This metric represents the percentage of the listing price that homes are actually selling for. A higher percentage suggests that homes are selling close to their listing price, indicating a strong market and potentially allowing sellers to receive a higher return on their investment.
Lastly, we have the “Median Sold Price,” which stands at $404,995. This metric represents the middle point of all the sold prices, indicating the price level at which half of the homes sold above and half sold below. This figure provides an idea of the general price range in the market. For sellers, a higher median sold price can be a positive indicator of potential profits.
Now that we have analyzed these metrics individually, let’s discuss their correlation. The low “Months Supply of Inventory” combined with the decreased “12-Month Change in Months of Inventory” suggests a tightening market with decreasing supply. This, coupled with the relatively short “Median Days Homes are On the Market,” indicates high demand. Consequently, these factors may contribute to the high “List to Sold Price Percentage” and the relatively high “Median Sold Price.”
In conclusion, these real estate metrics collectively point towards a strong market with limited supply, high demand, and potentially higher prices. Whether you are a buyer or seller, understanding these correlations can help guide your decision-making process in the dynamic world of real estate.
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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