Using Infosparks (a powerful MLS data statistics program) we can get a better feel for where we’ve been and were we’re going in our local real estate market. . Note from Bob: “…this tool is awesome, then again…I’m a math major…but it’s so cool you’ll like it regardless of your mathematical persuasion.”
How’s the market? = MEDIAN SALES PRICE
Typically, when someone is asking this question they’re wondering how much homes are selling for? A good statistic to determine how things are going is Median Sales Price. (we us median rather than mean to determine our average. “Median” is the value in the middle…half of the sales sold for less than this price and the other half sold for more. “Mean” is the “average” we typically think of when we add and divide values. In this case the real estate value may be too heavily influenced by a few really expensive homes).
How many homes have sold? = CLOSED SALES
What do you think? Have you seen a lot of for sale signs in the neighborhood recently? Even though people may be selling and buying, number of closed sales may be be an indicator of the health of the real estate market. Rather factors such as interest rates, inventory, economy, and affordability may be affecting decisions on why sellers are selling and buyers are buyer. (Note that prices do not account for seller concessions such as closing costs)
How long is it taking to sell a home? = DAYS ON MARKET (DOM)
What are you seeing? Is there a sold sign going up fairly quickly? Or does it seem like that listing has been sitting there a while? Days on market is long it takes for a listing to receive and accept an offer and for the buyers to complete their contingencies (i.e. inspections). During this time the home is no long for sale and is on it’s way to closing and just waiting for completion of lender and title work. (do take these values with a grain of salt. Many times a seller may drop the price and re-list to reset their DOM. When we do a market analysis on your home we will provide you with the complete history of a comparable listing rather than just DOM).
Is it a buyer’s or seller’s market? = MONTHS SUPPLY OF HOMES
This statistic may be one of the better indicators of the current balance of the real estate market. TheMonths Supply of Homes for Sale (also known as absorption rate) is the estimation of how long it would take to sell every home on the market if no new listing hit the market. For example, if there are 100 active listings, and the average number of homes sold per month over the last year was 20, the Months Supply of Homes for Sale would be 100/20 = 5 months (five months to sell off every home on the market). A rate between 5 and 7 is typically considered a balanced market. A rate below 5 is considered a seller’s market and a rate greater than 7 is typically defined as a buyer’s market.
How much is my home worth? = CMA – Comparative Market Analysis
When we do a market analysis on your home (or one that you are considering to purchase) we take into account many factors including the criteria below. We then crunch the numbers and let you know what the market indicates your home is worth. If you are interested in finding out what your home is worth, give us call today or fill out this CMA – comparative market analysis questionnaire right now.
- year built
- total finished sq ft
- above ground finished sq ft
- foundation size
- number of bedrooms (upper or lower level)
- number of baths (# of full, 3/4, and 1/2’s)
- level of bedrooms and baths (upper or lower)
- garage (stalls and attachment)
- yard (landscaping, fence)
- location in the neighborhood
- updates, ages of updates
- condition of home