As a buyer or seller in the real estate market, it is crucial to understand the correlation between various metrics that play a significant role in determining the state of the housing market. Today, we will delve into the connection between five key 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 for the Cornelius, NC market. So, let’s dive right in!
Months Supply
Firstly, let’s talk about the Months Supply of Inventory, which currently stands at 2.85. This metric indicates the number of months it would take to sell the existing inventory of homes on the market if no new properties were listed. A lower number suggests a seller’s market, where demand surpasses supply, leading to potential price increases and a competitive environment for buyers.
Now, let’s shift our attention to the 12-Month Change in Months of Inventory, which shows an increase of 46.15%. This metric signifies the percentage change in the number of months it would take to sell the current inventory compared to the previous year. A positive change of this magnitude indicates that the market is shifting towards a more balanced state, with an increase in the supply of homes available for sale.
Days On Market
Moving on, we come to the Median Days Homes are On the Market, which currently sits at 35. This metric measures the average number of days it takes for a property to sell from the moment it is listed. A lower number suggests a fast-paced market where homes are in high demand, potentially signaling a seller’s advantage.
Sale Price Versus List Price
Next up, we have the List to Sold Price Percentage, which currently stands at 98%. This metric reveals the percentage of the original listing price that a property ultimately sells for. A higher percentage implies that homes are selling very close to their initial asking price, indicating a stronger market with less room for negotiation.
Median Sold Price
Finally, let’s discuss the Median Sold Price, which is currently at $468,000. This metric represents the middle point of all the home prices sold during a specific period. It provides insight into the overall value of properties in the market, and an increase in this figure suggests a healthy and potentially appreciating market.
What The Numbers Mean
Now that we have examined each metric individually, let’s explore their correlation. The increase in the 12-Month Change in Months of Inventory, along with the relatively low Months Supply of Inventory, indicates a market that is slowly moving from a seller’s market to a more balanced one. This shift might lead to a slight increase in the number of days homes spend on the market, as buyers have more options to choose from.
However, despite this potential increase, the Median Days Homes are On the Market remains relatively low at 35 days. This suggests that the market is still quite active, with homes selling relatively quickly.
Furthermore, the List to Sold Price Percentage of 98% indicates that sellers are achieving close to their desired asking price, showcasing a market with limited room for negotiation and potentially favoring sellers.
Lastly, the Median Sold Price of $468,000 reflects the overall value of properties sold. It is important to note that this figure is influenced by factors such as location, property condition, and market demand. As this figure remains steady, it indicates a stable market where prices are holding their ground.
Conclusion
In conclusion, the correlation between these real estate metrics paints a picture of a market transitioning from a seller’s market to a more balanced one, with an increase in available inventory. Despite this shift, the market remains active, with homes selling relatively quickly. Sellers continue to achieve a high percentage of their asking price, indicating limited negotiation room. Overall, the median sold price remains stable, reflecting a market where property values are holding steady. As buyers and sellers, understanding these correlations is crucial in making informed decisions in today’s real estate landscape.
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