The first step to any home purchase or sale is knowing your market. Find out what is going on in the local real estate market to know exactly how to position your transaction among the competition. If knowledge is power, this data is your ticket to a real estate transaction under your best possible terms!
Median home prices will give you a broad overview of the fluctuation of home prices in our market. Median pricing also shows the price at which the bulk of homes center around.
It is crucial to analyze pricing that a home closed for, not what it was listed at. Closed pricing reflects the price at which a home was actually sold while listing price only reflects what the seller hopes to acquire for the home.
Months of supply determine whether a market is a buyer’s or seller’s market. The concept centers around the hypothetical situation that if no new listings were to come on the market, this number would be how long it would take for a market to run out of houses.
Typically, a buyer’s market is 6 or more months of supply, a neutral market is 3-6 months of supply, and a seller’s market is less than 3 months of supply.
It’s possible for a market to have over extended periods in one type of market. Orlando, for example, has been in a seller’s market since 2019. (09/07/21)
Average days on market measure how quickly a home goes under contract from the date it is officially listed in the MLS. Sellers and buyers alike need to pay special attention to this data.
For sellers, the average days on market represents how quickly they would have to prepare to move out of the property or how quickly they would make the sale. Additionally, cash offers can take around 15 days to close while financed deals can take anywhere from 35-60 days, depending on the terms, until the deed is transferred and funds disbursed.
For buyers, taking care to note the average days on market will prompt them on how quickly a decision must be made to avoid losing their potential home to another buyer.
Active listings show the volume of how many homes (of all property types: townhomes, single-family, condos, etc) are available in the regional market. Comparing this volume to the previous years can give you an idea of whether or not buyers have many options when it comes to the purchase of a home.
Sellers will always have a number in mind for their homes, unfortunately, this number may not always reflect the current state of the market and what buyers are willing to pay. Of course, since every house is unique, this logic may not always apply; however, the Average Sale to Original Listing Price ratio will give a good indication as to the final negotiated price of the home.
I.E: If the ratio is shown at 100, buyers in the market are willing to give full asking price for the majority of homes priced to market. If the ratio is shown at 95, you can expect the home to close at 95% of the asking price.