Hello Friends, as both buyers and sellers in the real estate market, you may be curious to know how different metrics in the industry correlate with one another. Today, we will delve into the correlation between several key real estate metrics that will provide valuable insights for your decision-making process.
First, let’s examine the “Months Supply of Inventory,” which currently stands at 1.79. This metric represents the number of months it would take to sell all available homes in the market if no new properties were listed. A lower number suggests a seller’s market, indicating high demand and limited supply.
Next, we observe the “12-Month Change in Months of Inventory,” which shows an impressive increase of +68.87%. This substantial rise implies that the supply of homes on the market has significantly grown over the past year, potentially creating more options for buyers.
Moving on, we come across the “Median Days Homes are On the Market,” which stands at an astonishingly low figure of just 7 days. This metric highlights the speed at which homes are being sold, indicating a highly competitive market where buyers must act swiftly to secure their desired property.
Now, let’s explore the “List to Sold Price Percentage,” which currently sits at 101.1%. This metric represents the ratio between the listing price and the final sold price of a property. A percentage above 100% suggests that homes are typically selling above their initial asking price, indicating strong demand and potential bidding wars.
Lastly, we have the “Median Sold Price” at a robust $392,500. This metric represents the middle point of all the sold prices in a given area, providing a snapshot of the market’s overall price range. With a median selling price at such a significant level, it demonstrates the value and potential return on investment that the real estate market offers.
Now, let’s connect the dots between these metrics. The low “Months Supply of Inventory” combined with the high “12-Month Change in Months of Inventory” indicates a shift in the market towards a more buyer-friendly environment. This is further supported by the short “Median Days Homes are On the Market,” indicating a quick turnover of available properties.
In such a competitive market, it is no surprise that the “List to Sold Price Percentage” exceeds 100%. Buyers must be prepared to offer competitive bids to secure their dream homes. Additionally, the high “Median Sold Price” demonstrates the strength and potential profitability of investing in the real estate market.
In conclusion, the correlation between these real estate metrics paints a picture of a dynamic and thriving market. Buyers should be prepared to act swiftly and competitively, while sellers can expect strong demand for their properties. The current market conditions indicate a favorable environment for both buyers and sellers, making it an exciting time to engage in real estate transactions.
Thank you for your attention, and we hope this analysis has provided you with valuable insights for your 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 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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