Hello friends, as buyers and sellers in the real estate market, it is essential for you to understand the correlation between various real estate metrics. Today, we will be discussing four key metrics that will shed light on the current state of the market and assist you in making informed decisions.
Firstly, let’s talk about the “Months Supply of Inventory,” which currently stands at 1.56. This metric represents the number of months it would take to sell all the available homes on the market if no new properties were listed. A lower number indicates a seller’s market, where demand exceeds supply, resulting in higher prices and potentially faster transactions.
Next, we have the “12-Month Change in Months of Inventory,” which has seen a remarkable increase of +218.37%. This metric compares the current months of inventory with the same period from the previous year. Such a significant rise suggests a shift towards a buyer’s market, where there are more homes available for sale and potentially more negotiating power for buyers.
Moving on to the “Median Days Homes are On the Market,” we find that homes are taking an average of 22 days to sell. A lower number here reflects a faster-paced market, where buyers are acting swiftly to secure their desired properties. This metric indicates a sense of urgency among buyers, potentially leading to competitive bidding situations.
Now, let’s dive into the “List to Sold Price Percentage,” which currently stands at an impressive 100.2%. This metric represents the ratio of the final sold price to the initial listing price. A percentage above 100 indicates that homes are, on average, selling for more than their initial asking price. This suggests a strong demand from buyers, potentially leading to multiple offers and bidding wars.
Lastly, we have the “Median Sold Price,” which currently sits at $667,500. This metric represents the middle point of all the sold prices in a given area. It provides a snapshot of the market’s overall price range. A higher median sold price suggests a more affluent market, with higher property values and potentially more competitive offers.
In summary, the data suggest an interesting correlation between these real estate metrics. While the monthly supply of inventory indicates a seller’s market, the significant increase in the 12-month change in months of inventory hints at a shift toward a buyer’s market. The median days homes are on the market, coupled with the list-to-sold price percentage, showcases a fast-paced market with high demand and potentially competitive bidding situations. Lastly, the median sold price reflects a market with higher property values and a potentially more affluent buyer pool.
As buyers and sellers, it is crucial to consider these metrics when making real estate decisions. Understanding the current state of the market and how these metrics interrelate will empower you to navigate the real estate landscape 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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