Hi Friends, as buyers and sellers in the real estate market, it is crucial to understand the correlation between various metrics that can greatly impact your decision-making process. Today, we will delve into the relationship between the following real estate metrics: Months Supply of Inventory, 12-Month Change in Months of Inventory, Median Days Homes are On the Market, List to Sold Price Percentage, and Median Sold Price.
Let’s begin with the Months Supply of Inventory, which currently stands at 2.43. 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 number indicates a seller’s market, where demand exceeds supply. The fact that the Months Supply of Inventory is relatively low suggests that there is a limited inventory available, creating a competitive environment for buyers.
Now, let’s shift our focus to the 12-Month Change in Months of Inventory, which shows a decrease of 8.99%. This metric provides insight into the rate at which the Months Supply of Inventory is changing over a year. The negative percentage suggests a decline in the number of months it would take to sell all the available homes. This trend indicates an increasingly competitive market, with properties selling at a faster pace than in the previous year.
Moving on to the Median Days Homes are On the Market, we find that homes are typically sold within 29 days. This metric measures the average time it takes for a home to go from listing to closing. A lower number implies a faster-selling market, indicating high demand and motivated buyers. This information is particularly valuable for sellers, as it suggests that their properties have the potential to sell relatively quickly.
Next, we come to the List to Sold Price Percentage, which stands at 97.3%. This metric represents the ratio between the final sold price of a property and its initial list price. A higher percentage indicates that homes are selling closer to their asking prices. In this case, the figure of 97.3% suggests that sellers are achieving a significant portion of their desired price, creating a favorable environment for them.
Lastly, let’s examine the Median Sold Price, which currently stands at $409,387. This metric represents the middle point of all the sold prices in a given area. It provides a snapshot of the current market value and helps both buyers and sellers gauge the price range they can expect. The fact that the median sold price is at $409,387 gives buyers and sellers an idea of the market’s average pricing.
In conclusion, the correlation between these real estate metrics paints a picture of a competitive market with limited inventory, homes selling at an accelerated pace, and sellers achieving a significant portion of their initial asking prices. As buyers and sellers, it is crucial to consider these metrics carefully when navigating the real estate market to make informed decisions that align with your goals.
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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