In a fast paced real estate market, great agents are students of home sale statistics. It’s not enough anymore to just know the numbers…in order to effectively represent you, your agent needs to closely monitor the trends, and understand the impact that they have on negotiations. Moreover, it’s important that they watch these trends in different market segments, price points, and on the neighborhood level. Here are the categories you should expect your real estate agent to be proficient in:
Months supply of inventory; this has dropped steadily over the past 12 months in both market areas. Less than 6 on the Peninsula – hovering around 8 in Williamsburg. The key when interpreting this statistic is to use the market segment that applies – because it may be dramatically different in different price ranges and neighborhoods. On the Peninsula, if you filter for bank owned inventory, you’ll find that the market is definitely favoring sellers of well positioned listings in market ready condition.
Sales absorption rates: What % of inventory is being “absorbed” each month? This is a very powerful statistic, both for buyers and sellers.
Median sales price: A better indication of appreciation/depreciation than average sold price, in my opinion. Is it increasing or decreasing, and is there enough inventory in the search parameter to make it a meaningful number? Agents should be careful with this one, as sales activity can influence the number (e.g., a great deal of activity in the lower quartile of the market will result in lower prices, which may or may not be an indication of decreasing values).
Sold price to list price ratios: Offers are definitely getting stronger as inventory levels have dropped – we’ve seen overall market ratios improve to over 98% - up over a full percentage point in just 6 months. This can be a tricky indicator, however, as it all relates back to how aggressively the listing is positioned in the first place.
Days on market: Probably the least reliable of market stats, because the calculation doesn’t include listing history; nonetheless, DOM is a great benchmark to monitor trends. If you have a listing that has passed the average days on market, it’s time to revisit your positioning strategy.
Knowledge is power, and market knowledge is a great way for your agent to prove their expertise and gain credibility with you!
The most important weapon in a fast paced market? An experienced REALTOR to guide you, and help you make wise decisions. Email us at concierge@lizmoore.com, or fill out our buyer interview form below, and we'll be happy to match you with the right agent for your situation!
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