Hello friends, in the world of real estate, there are several key metrics that both buyers and sellers should pay attention to. These metrics provide valuable insights into the current state of the market and can help inform decisions related to buying or selling a property. Today, we will be discussing the correlation between months supply of inventory, the 12-month change in months of inventory, median days homes are on the market, list-to-sold price percentage, and median sold price.
Firstly, let’s take a look at the months supply of inventory, which currently stands at 1.28. This metric represents the number of months it would take to sell all the homes on the market if no new properties were listed. A low months supply of inventory suggests a seller’s market, meaning there is high demand for homes and a limited supply. This can lead to increased competition among buyers and potentially higher prices.
Next, we have the 12-month change in months of inventory, which is currently -13.51%. This metric indicates the percentage change in the number of months it would take to sell all the homes on the market compared to the previous year. A negative change suggests a decrease in inventory, which can further drive up prices and make the market more favorable for sellers.
Moving on, we come to the median number of days homes are on the market, which is an impressively low 5 days. This metric measures the average number of days it takes for a home to sell once it is listed. A low median days on the market indicates a fast-paced market where properties are selling quickly. This can be beneficial for sellers who are looking for a quick turnaround.
Now, let’s discuss the list of sold price percentages, which currently stand at 101.3%. This metric represents the average percentage of the listing price that homes are ultimately sold for. A percentage above 100% suggests that homes are selling for more than the listed price, indicating a competitive market with bidding wars and potentially higher prices.
Lastly, we have the median sold price, which is $649,000. This metric represents the middle point of all the home prices that have been sold recently. It provides a snapshot of the current market value and can help both buyers and sellers gauge the overall price range in a given area.
When we analyze these metrics together, we can see a clear correlation. The low months supply of inventory, coupled with a negative change in months of inventory, suggests a tight market with limited supply. This, in turn, drives up prices, as indicated by the list to sold price percentages above 100% and the median sold price of $649,000. Additionally, the incredibly low median days on the market further reinforce the high demand for properties and the fast pace at which they are being sold.
For buyers, these metrics suggest a competitive market with limited options and potentially higher prices. It may be wise to act quickly and be prepared to make competitive offers. On the other hand, sellers can take advantage of the current market conditions to potentially secure a quick sale and potentially higher sale prices.
In conclusion, the correlation between months supply of inventory, the 12-month change in months of inventory, median days homes are on the market, list-to-sold price percentage, and median sold price all point towards a competitive real estate market with limited supply and high demand. Both buyers and sellers should closely monitor these metrics to make informed decisions in their real estate endeavors.
If you have any questions and need help with market trends and updates, reach out to Jennifer Yoingco, REALTOR® and her team, 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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