When it comes to real estate, there are several key metrics that buyers and sellers should be aware of. These metrics can provide valuable insights into the current state of the housing market and help guide decision-making processes. Let's take a closer look at the correlation between some of these metrics and what they mean for buyers and sellers.


First, let's focus on the Months Supply of Inventory, which currently stands at 4.02. This metric represents the number of months it would take to sell all the available homes on the market at the current pace of sales. A lower number indicates a seller's market, where demand exceeds supply, while a higher number suggests a buyer's market, where supply outpaces demand. In this case, with a 4.02-month supply, we can say that the market is relatively balanced between buyers and sellers.


Now, let's examine the 12-Month Change in Months of Inventory, which has experienced a significant increase of 36.27%. This metric compares the current months of inventory to the same period in the previous year. A positive percentage indicates an increase in supply, which can potentially favor buyers as they have more options to choose from. However, sellers might need to adjust their pricing and marketing strategies to stay competitive in a market with more inventory.


Moving on to the Median Days Homes are On the Market, we find that it is 46 days. This metric measures the average number of days it takes for a home to sell once it's listed. A lower number suggests a faster-paced market, indicating strong buyer demand and potentially multiple offers on desirable properties. On the other hand, a higher number may indicate a slower market, with properties sitting on the market longer before finding a buyer.


Next, let's consider the List to Sold Price Percentage, which currently stands at 99%. This metric reveals the percentage of the listing price that homes are actually selling for. A higher percentage suggests that sellers are receiving offers close to or at their asking prices, indicating a strong seller's market. Conversely, a lower percentage may indicate that buyers have more negotiating power and can secure homes at below asking prices.


Lastly, the Median Sold Price in this market is $449,990. This metric represents the middle point of all the sold prices during a specific period. It helps determine the overall price range and can be used as a guide for both buyers and sellers to understand the average value of homes in a given area.


When we analyze these metrics together, we can see a correlation 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. In this particular scenario, we have a balanced market, indicated by the 4.02-month supply of inventory. However, the significant increase in the 12-Month Change in Months of Inventory suggests a shift towards a more buyer-friendly market. This is further supported by the median days homes are on the market, which is relatively low at 46 days, indicating a faster-paced market. The list to sold price percentage of 99% suggests that sellers are receiving offers close to their asking prices, thus reflecting a strong seller's market. Finally, the median sold price of $449,990 provides a benchmark for buyers and sellers to gauge the average value of homes in this market.


Overall, buyers and sellers should consider all these metrics together when making decisions in the real estate market. It's important to stay informed about the current state of supply and demand, pricing trends, and the average time it takes to sell properties. By understanding these correlations, buyers and sellers can navigate the market more effectively and make informed decisions that align with their goals and expectations.

Posted by Jordan Walker on


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