Hi Friends, today I would like to discuss the correlation between several important real estate metrics that are of great interest to both buyers and sellers. By analyzing these metrics, we can gain a deeper understanding of the current state of the real estate market and how it may impact your decision-making process.
Firstly, let’s take a look at the “Months Supply of Inventory,” which currently stands at 2.62 months. This metric measures the number of months it would take to sell all the homes on the market if no new listings were added. A lower number indicates a seller’s market, where demand outpaces supply, leading to potentially higher prices and faster sales.
Now, let’s examine the “12-Month Change in Months of Inventory,” which has seen a significant increase of +14.41%. This change suggests that there has been a shift towards a more balanced market, where supply and demand are more closely aligned. While the market still favors sellers, this increase indicates that there may be more options for buyers to choose from, potentially resulting in more negotiable prices.
Moving on, we have the “Median Days Homes are On the Market,” which currently stands at 38 days. This metric indicates the average number of days it takes for a home to go from being listed to being sold. A lower number suggests a faster-paced market, where homes are in high demand and sell quickly. Conversely, a higher number may indicate a slower market, providing buyers with more time to consider their options and potentially negotiate better deals.
Next, let’s discuss the “List to Sold Price Percentage,” which currently stands at 97.6%. This metric calculates the percentage of the listing price that a home ultimately sells for. A higher percentage suggests that homes are selling close to their listing price, indicating a strong market where buyers are willing to pay a premium. On the other hand, a lower percentage may indicate a more negotiable market, where buyers have more leverage to negotiate a lower price.
Lastly, we have the “Median Sold Price,” which is currently at $300,000. This metric gives us an idea of the average price at which homes are being sold. While it is essential to note that this number can vary significantly based on location and property type, it provides a general indication of the market’s overall price range.
Now, let’s tie all these metrics together. The Months Supply of Inventory, which is relatively low at 2.62, indicates a seller’s market, where demand outpaces supply. However, the 12-Month Change in Months of Inventory, with its significant increase of +14.41%, suggests a shift towards a more balanced market. This change may offer buyers more choices and potentially more room for negotiation.
The Median Days Homes are On the Market, at 38 days, indicates a relatively fast-paced market, where homes are in demand and sell quickly. Additionally, the List to Sold Price Percentage, which is relatively high at 97.6%, suggests that homes are selling close to their listing price, further indicating a strong market.
Finally, the Median Sold Price of $300,000 provides buyers and sellers with a general idea of the price range in the current market. It is essential to keep in mind that this number can vary significantly based on the location and type of property.
In conclusion, by considering these real estate metrics, buyers and sellers can gain valuable insights into the current state of the market. The data indicates a seller’s market with strong demand, but also hints at a shift towards a more balanced market. Buyers may find more options and potentially negotiate better deals, while sellers can take advantage of the high List to Sold Price Percentage. Ultimately, staying informed and understanding these metrics will empower both buyers and sellers to make more informed decisions in the real estate market.
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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