Today, we have gathered here to discuss some crucial real estate metrics that will provide valuable insights to both buyers and sellers. These metrics will help you understand the current state of the market and make informed decisions.
Let’s start with the “Months Supply of Inventory,” which is currently at an encouraging 4.2 months. This metric measures the number of months it would take to sell all the available 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.
Now, let’s consider the “12-Month Change in Months of Inventory,” which shows a significant increase of +19.32%. This increase implies that the supply of homes has grown over the past year. While this may seem like a shift towards a buyer’s market, it is essential to assess this change in conjunction with other metrics to gain a comprehensive understanding.
Moving on, we have the “Median Days Homes are On the Market,” which currently stands at 45 days. This metric indicates the average number of days it takes for a home to sell. A shorter duration suggests a more active market with higher demand, benefiting sellers. Conversely, a longer duration might indicate a slower market, potentially favoring buyers.
Next, we have the “List to Sold Price Percentage,” which is currently at an impressive 97%. This metric reveals the percentage of the original list price that homes are typically sold for. A higher percentage signifies that sellers are receiving offers closer to their asking price, implying a strong market with motivated buyers.
Lastly, we have the “Median Sold Price,” which is a remarkable $2,825,000. This metric represents the middle point of all the sold prices in a given period. A higher median sold price indicates a higher-priced market, which can be advantageous for sellers looking to maximize their profits.
Now, let’s analyze the correlation between these metrics. The 12-Month Change in Months of Inventory (+19.32%) suggests an increase in supply, potentially leading to a more balanced market. However, the Median Days Homes are On the Market (45 days) and the List to Sold Price Percentage (97%) indicate a strong demand, favoring sellers.
Considering the Median Sold Price ($2,825,000), we can infer that the market is currently experiencing high-value transactions. The combination of a relatively low supply (4.2 months) and a high list to sold price percentage suggests that buyers are willing to pay close to the asking price for these higher-priced properties.
In conclusion, these real estate metrics paint a picture of a dynamic market with a growing supply of homes. However, the strong demand, low median days on the market, and high list to sold price percentage indicate that sellers still hold an advantage. The high median sold price further emphasizes the presence of high-value transactions in the market.
Buyers can use this information to understand the current market conditions and potentially adjust their strategies accordingly. Sellers can take advantage of the favorable metrics to maximize their selling potential. Remember, it is crucial to stay informed and work with a professional who can guide you through the intricacies of this ever-changing real estate landscape.
Thank you for joining today’s discussion, and we hope you found this analysis valuable.
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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