Hi Friends, today we will delve into the fascinating world of real estate metrics to explore the correlation between these key indicators. Whether you are a buyer or a seller, understanding these metrics can provide valuable insights into the current state of the market and help inform your decisions. So grab a cup of coffee, sit back, and let’s dive in!
First on our list is the “Months Supply of Inventory,” which currently stands at 2.48. This metric represents the number of months it would take for all the available homes on the market to be sold, given the current sales pace. A lower number indicates a seller’s market, where demand exceeds supply, while a higher number suggests a buyer’s market, where supply surpasses demand. In our case, with a relatively low value of 2.48, we can infer that the market is favoring sellers, as the supply of homes is limited compared to the demand.
Next up, we have the “12-Month Change in Months of Inventory,” which shows a positive growth of 9.25%. This metric measures the percentage change in the months of inventory over the past year. A positive change indicates an increase in inventory, potentially favoring buyers, while a negative change suggests a decrease, potentially benefiting sellers. With a significant growth of 9.25%, we can deduce that there has been an increase in the number of homes available on the market over the past year, providing more options for potential buyers.
Moving on, we come to the “Median Days Homes are On the Market,” which currently stands at 35. This metric represents the average number of days it takes for a home to sell once it is listed. A lower number indicates a faster-paced market, where homes are in high demand and sell quickly, while a higher number suggests a slower market, where homes may take longer to sell. With a median of 35 days, we can conclude that the market is relatively active, with homes selling at a moderate pace.
Now, let’s explore the “List to Sold Price Percentage,” which currently sits at 98.1%. This metric measures the percentage of the listing price at which a home ultimately sells. A higher percentage indicates that homes are selling close to their listing price, while a lower percentage suggests that homes may be selling below their initial asking price. In our case, with a strong percentage of 98.1%, we can infer that sellers are achieving close to their desired listing price, indicating a healthy market for sellers.
Lastly, we have the “Median Sold Price,” which currently stands at $375,000. This metric represents the middle point of all the sold prices in a given period. It gives us an idea of the overall price range and trends in the market. A higher median sold price suggests a more affluent market, while a lower median price indicates a market with more affordable options. With a median of $375,000, we can conclude that the market is relatively balanced, catering to a diverse range of buyers and sellers.
In summary, we have explored the correlation between these real estate metrics and uncovered some interesting trends. The low “Months Supply of Inventory” suggests a seller’s market, while the positive growth in the “12-Month Change in Months of Inventory” indicates an increase in available homes. The “Median Days Homes are On the Market” suggests a moderately active market, while the “List to Sold Price Percentage” and “Median Sold Price” indicate a market that is favorable for both buyers and sellers.
As buyers or sellers, it is crucial to stay informed about these metrics to make educated decisions in the ever-changing real estate landscape. By understanding the current state of the market, you can better navigate the buying or selling process and ensure a successful transaction. Happy house hunting or selling, and may your real estate endeavors be fruitful!
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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