Hi Friends, as buyers and sellers in the real estate market, it is essential for you to understand the correlation between various metrics that can greatly influence your decision-making process. Today, we will delve into the relationship between the months supply of inventory, the 12-month change in months of inventory, the median days homes are on the market, the list to sold price percentage, and the median sold price. So, sit back, relax, and let’s explore these metrics together.
Firstly, let’s discuss the months supply of inventory, which currently stands at 2.25. This metric represents the number of months it would take to sell all the existing homes on the market, assuming no new listings are added. A lower number indicates a seller’s market, with high demand and limited supply, while a higher number signifies a buyer’s market, where supply exceeds demand. In our scenario, with a months supply of inventory at 2.25, we can conclude that the market leans towards a seller’s market, suggesting a healthy demand for properties.
Now, let’s move on to the 12-month change in months of inventory, which shows an increase of 34.73%. This metric reveals the percentage change in the months supply of inventory compared to the previous year. A positive change indicates a decrease in demand or an increase in supply, potentially shifting the market dynamics. In our case, the substantial increase suggests a shift towards a more balanced market or even a buyer’s market, presenting favorable conditions for those looking to purchase a property.
Next, let’s consider the median days homes are on the market, which stands at 31. This metric represents the average number of days it takes for a property to sell. A lower number indicates a faster pace of sales, reflecting high demand and competitive market conditions. Conversely, a higher number signifies a slower market, potentially indicating decreased demand or an oversupply of homes. With homes spending an average of 31 days on the market, we can infer that properties are selling relatively quickly, reflecting a healthy and active real estate market.
Moving on, let’s discuss the list to sold price percentage, which currently stands at 97.9%. This metric represents the percentage of the initial listing price that a property ultimately sells for. A higher percentage suggests strong buyer demand and a competitive market, where properties are frequently selling for close to or even above the asking price. Conversely, a lower percentage may indicate a softer market, with more negotiation between buyers and sellers. In our current scenario, with a list to sold price percentage of 97.9%, we can conclude that sellers are generally receiving offers close to their listing price, illustrating a robust market with strong buyer interest.
Lastly, let’s focus on the median sold price, which currently stands at $353,000. This metric represents the middle point of all the sold prices within a given time period. The median sold price provides valuable insights into the overall pricing trends and affordability within a particular market. In our case, with a median sold price of $353,000, we can conclude that the market offers a range of properties at various price points, catering to both buyers with different budgets and sellers aiming to achieve fair market value for their properties.
In summary, as buyers and sellers, it is crucial to understand the correlation between various real estate metrics. The months supply of inventory, the 12-month change in months of inventory, the median days homes are on the market, the list to sold price percentage, and the median sold price all provide valuable information about the state of the market. In our analysis, we found that the current market leans towards a seller’s market, with a healthy demand for properties, relatively quick sales, and properties selling close to their listing price. However, the increase in the months supply of inventory over the past year suggests a potential shift towards a more balanced or buyer’s 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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