Hi Friends, today we have gathered here to delve into the fascinating world of real estate metrics. As buyers and sellers, understanding these metrics is crucial in making informed decisions and navigating the ever-changing housing market. So, let’s jump right in and explore the correlation between the following real estate metrics.
Firstly, we have the “Months Supply of Inventory,” which currently stands at 3.56. This metric represents the number of months it would take to sell all the available homes on the market based on the current sales pace. A lower months supply indicates a seller’s market, where demand exceeds supply, leading to increased competition and potentially higher prices. Conversely, a higher months supply suggests a buyer’s market, where supply surpasses demand, leading to more choices and potentially lower prices.
Now, let’s examine the “12-Month Change in Months of Inventory,” which has seen an impressive increase of +69.52%. This upward trend indicates a shift towards a buyer’s market, as the supply of homes has grown relative to demand over the past year. Buyers can take advantage of this change by having more negotiating power, more options to choose from, and potentially more room for price negotiations.
Moving on, we have the “Median Days Homes are On the Market,” which currently stands at 24. This metric represents the average number of days it takes for a home to sell after being listed. A lower median days on the market suggests a fast-paced market, where homes are in high demand, and buyers need to act swiftly. Conversely, a higher median days on the market indicates a slower market, where homes may take longer to sell, providing buyers with more time to make decisions.
Next up, we have the “List to Sold Price Percentage,” which currently sits at 95.1%. This metric measures the percentage of the original listing price that a home sells for. A higher percentage suggests that homes are selling closer to their initial listing price, indicating a strong market with minimal price reductions. On the other hand, a lower percentage may indicate a market where sellers are more willing to negotiate on price.
Lastly, we have the “Median Sold Price,” which currently stands at a respectable $377,500. This metric represents the middle point of all the home prices sold in a given period, indicating the market’s overall price trend. As a buyer or seller, it’s important to keep an eye on this metric to understand the general price range of homes in the market and make informed decisions accordingly.
In conclusion, these real estate metrics provide valuable insights into the current state of the housing market. While the months supply of inventory and 12-month change in inventory suggest a shift towards a buyer’s market, the median days homes are on the market and list to sold price percentage indicate a market that still favors sellers. The median sold price serves as an important reference point for understanding the overall price trend.
As buyers, understanding these metrics can help you determine the urgency to act and the potential room for negotiation. As sellers, these metrics can guide you in pricing your home competitively and making informed decisions about timing. So, let’s embrace the power of knowledge and make the most of these real estate metrics in our journey through the exciting world of buying and selling homes.
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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