Every month we read, hear, and see real estate statistics. Yet what do the statistics really mean?
When taken out of context, they can be interpreted in many ways, which is one reason it’s important to look at them from both macro and micro levels. That way, we can make educated decisions about our homes.
Given no Realtor has a crystal ball, none of us knows for certain what the future holds. Yet, a highly professional Realtor will watch for trends and interpret them for your particular situation. So that you’re best able to interpret statistics yourself, here’s the definition of an important term:
– What does ‘inventory or supply’ of homes mean?
Real estate inventory, or supply, relates to the number of homes actively for sale in relation to available buyers. It’s tracked in terms of months. If there’s a three month supply of homes for sale – and NO NEW HOMES came on the market – it would take three months for the available homes to be purchased.
– How do I use this information?
You’ve heard of a Buyer’s Market, or Seller’s Market, right? That market is determined by the supply of homes for sale. You can watch trends yourself:
- Seller’s Market = A six month or less supply of homes for sale. It means there are more buyers for homes than there are available properties. A Seller’s Market often means homes may sell for more, in less time.
- Buyer’s Market = A six month or more supply of homes for sale. There are more homes for sale than available buyers to purchase. A Buyer’s Market often pushes prices down, and length of time to sell up, due to increased competition among properties.
– What market are we in now?
As of April 2019, we’re in a Seller’s Market. Keep an eye on this statistic, and you’ll be able to follow the market as it shifts!
If you have questions about this information or today’s market, please don’t hesitate to call. It’s my pleasure to be of service. – Lisa Becker