In the realm of real estate, there are several key metrics that buyers and sellers should take into consideration when analyzing the market. By understanding and interpreting these metrics, individuals can make more informed decisions when it comes to buying or selling a property. Today, we will delve into the correlation between the following real estate metrics: Months Supply of Inventory, 12-Month Change in Months of Inventory, Median Days Homes are On the Market, List to Sold Price Percentage, and Median Sold Price.
First, let’s take a look at the Months Supply of Inventory, which currently stands at 4.39. This metric represents the number of months it would take to sell all the available properties on the market, given the current pace of sales. A lower number suggests a seller’s market with high demand and limited inventory, while a higher number indicates a buyer’s market with more supply than demand. In our case, a months supply of 4.39 suggests a balanced market, where supply and demand are relatively equal.
Now, let’s examine the 12-Month Change in Months of Inventory, which shows a positive percentage of +7.86%. This indicates an increase in the number of months it would take to sell all the available properties compared to the previous year. Such a change could suggest a potential shift towards a buyer’s market, where inventory is growing faster than demand. However, it’s important to consider this change in the context of other metrics to gain a more comprehensive understanding of the market dynamics.
Moving on, we come to the Median Days Homes are On the Market, which stands at 25. This metric represents the average number of days it takes for a property to sell once it’s listed. A lower number suggests a faster-paced market with strong buyer interest, while a higher number indicates a slower market with fewer buyers. In our case, a median of 25 days suggests a relatively quick turnover in the market, indicating a healthy level of buyer activity.
Next, we have the List to Sold Price Percentage, which currently sits at 97.3%. This metric measures the average percentage of the listing price that a property ultimately sells for. A higher percentage suggests that sellers are achieving close to their asking price, indicating strong buyer demand and potential competition among buyers. In our case, a list-to-sold price percentage of 97.3% signifies that sellers are generally receiving offers close to their initial asking price, highlighting a competitive market.
Lastly, we consider the Median Sold Price, which is currently reported as $1,252,500. This metric represents the middle point of all the sold prices in a given area or market. It provides a snapshot of the overall market value and can be used as a reference point for buyers and sellers. In our case, a median sold price of $1,252,500 indicates that properties in this market tend to sell at a higher price point, reflecting the desirability and value of the area.
When we analyze these metrics collectively, we see a market that is currently balanced with a relatively equal supply and demand. The increase in the 12-Month Change in Months of Inventory suggests a potential shift toward a buyer’s market, but the low Median Days Homes are On the Market and high List to Sold Price Percentage indicate that buyer demand remains strong. Additionally, the high Median Sold Price suggests that the properties in this market are priced at a premium.
In conclusion, buyers and sellers should consider these metrics when navigating the real estate market. These insights can help buyers make competitive offers and sellers set appropriate listing prices. It’s crucial to keep in mind that real estate markets are constantly evolving, so it’s advisable to consult with a real estate professional for the most up-to-date and accurate information.
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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