When analyzing the market trying to get a handle an where it’s headed, there are a number of data points that I find valuable. This effort is ongoing. When searching for a client selling or buying, I have to get more specific to their situation, the property, and expectations.
Months of inventory: This number tells us how active the buyer market is. It is affected by the number of available homes priced and presented well, and the number of active buyers. For instance, we have 100 homes on the market and 40 have SOLD in the past 30 days. This means that we have 2.5 months of available inventory.
Sellers have to realize that the competition for buyers is brutal as shown by the huge increase in months of inventory and days on the market. Also, home prices have settled. The seller’s list price is critical. Buyers are looking at the new listings and those that sit will do just that until there is a significant adjustment in price.