How Is The Market?
Buying or selling a home can be one of the most important decisions you make for yourself and your family. Many factors may influence the choices you make. As your real estate professionals, we have access to constantly updated local market information and statistics that can help you better understand your neighborhood.
If you're buying, you can use statistics to learn…
- Which neighborhood best meets your needs (schools, walkability, public transportation access and home features).
- Statistically typical household composition in the area.
- What taxes, fees and assessments are common to neighborhoods and how they impact infrastructure, schools and safety.
- Resale values.
- Job markets and other economic indictors.
When you're selling, we can show you…
- The right way to price your home.
- How long it's taking homes in your area to sell.
- The upgrades and changes that give the greatest return in your market.
- The current population demographic moving into your neighborhood and how to market to them.
- Important statistics and metrics to improve your selling experience.
Other statistical information important to your local housing market include six crucial areas…
- Median Price: "Median" does not mean the average. The median price is the actual price of the home in the center of a group, so out of 51 homes, the median one is #26 from the top and #26 from the bottom, but depending on how many homes sold in a given price range, the median could be significantly lower or higher than the average.
- Average Days on the Market: "Average days on market" (DOM) is determined by adding all the days on market from the date the listing is active in a multiple listing service and dividing by the total number of listings. The DOM generally increases in a buyer's market because inventory takes longer to sell. DOM decreases in a seller's market.
- Average Price per Square Foot: This number comes from dividing the selling price of comparable homes by their square feet and then averaging those numbers together. While this may be a useful start for determining the market value of a home, it does not take into consideration the homes' upgrades, finishes, amenities or other differences. It is useful for comparing homes that are very similar or as a starting point to determine pricing.
- Median Square Foot: As with Median Price, the "median square foot" is the size of the home in the middle of a group. Newer homes tend to have more square footage, so if you're comparing homes in a single subdivision or neighborhood, this is a useful metric.
- Inventory: Inventory is the list of actual homes for sale in multiple listing services at any given time. As with DOM, a lower inventory indicates a sellers' market, while a higher inventory is a sign of a buyers' market.
- Median Market Index: (Also called the Housing Market Index) is a survey of market conditions designed to measure the market for single-family homes based on a variety of metrics. A number above 50 indicates sales conditions are good, while a number below 50 means that sales conditions are poor.