Hello friends, as buyers and sellers in the real estate market, it is crucial to understand the various metrics that can greatly impact your decision-making process. Today, we will delve into the correlation between key real estate metrics that can provide invaluable insights into the current state of the market.
Let’s begin by examining the “Months Supply of Inventory.” This metric indicates the number of months it would take to sell all the available homes on the market if no new listings were added. In our case, the months supply of inventory stands at a low 1.47. This suggests a relatively low inventory of homes, which can create a sense of urgency among buyers, as the supply is limited.
Now, let us consider the “12-Month Change in Months of Inventory.” This metric illustrates the percentage change in the months of inventory compared to the previous year. In our scenario, we observe a decrease of -0.68%. This decline implies that inventory levels have decreased over the past year, indicating a potential increase in demand for homes.
Moving forward, we arrive at the “Median Days Homes are On the Market.” This metric reveals the average number of days it takes for a home to be sold. Astonishingly, the median days homes are on the market is a mere 17. This statistic suggests that homes are being snatched up quickly, which can be attributed to the low inventory and high demand.
Next, we come to the “List to Sold Price Percentage.” This metric signifies the percentage at which the final selling price of a home compares to its initial listing price. In our analysis, the list to sold price percentage stands at an impressive 99.4%. This indicates that homes are generally selling very close to their original asking price, highlighting a strong seller’s market.
Lastly, let us consider the “Median Sold Price,” which represents the middle point of all homes sold, with half being sold above and half below this price. In our case, the median sold price stands at $327,000. This figure is crucial for both buyers and sellers, as it provides a reference point for understanding the current market value of homes.
When we examine the correlation between these metrics, we can draw some compelling conclusions. The low months supply of inventory, combined with the decrease in months of inventory over the past year, suggests a seller’s market. This is reinforced by the high list to sold price percentage, indicating that homes are fetching close to their asking prices.
Furthermore, the median days homes are on the market being just 17 days reinforces the notion of a competitive market where properties are selling swiftly. Lastly, the median sold price of $327,000 provides valuable insight into the average price range for homes in this market.
As buyers, this data signifies that you may need to act expeditiously when finding a home that meets your needs, as the low inventory and high demand can lead to increased competition. Sellers, on the other hand, can take comfort in knowing that their homes are likely to sell quickly and at a price close to their asking price.
In conclusion, understanding and analyzing these real estate metrics can greatly assist both buyers and sellers in making informed decisions. Remember, the real estate market is constantly evolving, so it is essential to stay updated on these metrics to navigate the market successfully.
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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