In the current real estate market, there are several key metrics that can provide valuable insights for both buyers and sellers. Let’s delve into these metrics and uncover the correlation between them.
Firstly, let’s discuss the “Months Supply of Inventory,” which stands at 2.59. This metric represents the number of months it would take to sell all the available homes on the market, assuming no new listings are added. A lower value indicates a seller’s market, where demand exceeds supply, potentially leading to higher prices.
Now, let’s examine the “12-Month Change in Months of Inventory,” which is at -40.46%. This figure reflects the percentage change in the months supply of inventory compared to the previous year. A negative value indicates a decrease in supply, which can signify a tightening market and potentially drive up prices.
Moving on, the “Median Days Homes are On the Market” is 43. This metric reveals the average number of days it takes for a home to get sold. A shorter duration suggests a faster-paced market, indicating high demand and potentially leading to quicker sales.
Next, we have the “List to Sold Price Percentage,” which stands at 98.3%. This percentage indicates the average ratio of the final sold price to the initial listing price. A higher percentage suggests that homes are selling closer to their listing price, indicating a strong market for sellers and potentially resulting in less negotiation power for buyers.
Lastly, the “Median Sold Price” is $503,700. This metric represents the middle point of all the sold prices in a given area. It provides a snapshot of the overall price range and can be used as a benchmark for both buyers and sellers.
Now, let’s explore the correlation between these metrics. The low “Months Supply of Inventory” paired with the negative 12-month change in inventory indicates a market favoring sellers. With limited supply and a decreasing trend, sellers may have more negotiating power, potentially leading to higher prices. This notion is supported by the high “List to Sold Price Percentage,” which further suggests that homes are selling closer to their listing price.
Additionally, the relatively short “Median Days Homes are On the Market” indicates that homes are selling quickly, further reinforcing the seller’s advantage. The combination of high demand and limited supply is likely driving up prices, as reflected in the “Median Sold Price” of $503,700.
In summary, these real estate metrics suggest a seller’s market with low inventory, high demand, and increasing prices. Buyers should be prepared for potential competition and consider making competitive offers, while sellers can take advantage of the favorable conditions to potentially secure a higher sale price.
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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