January 31, 2024 - By, Kim Clark, Association Executive
Buyers and sellers should be aware of a number of important market trends. These indicators provide valuable information about current market conditions and can aid in decision-making. Let us take a closer look at how these indicators relate.
The "Months Supply of Inventory" indicator represents the number of months it would take to sell all the existing single family homes on the market if no new listings were added. In this case, the months supply of inventory for a single family residence in Silver City is 3.43. A lower number indicates a seller's market, where demand exceeds supply, potentially leading to higher prices.
Next, we have the "12-Month Change in Months of Inventory," which measures the percentage change in the months supply of inventory compared to the previous year. In this scenario, the change is -4.19%. A negative change suggests a decrease in inventory, which can create a more competitive market and potentially drive prices up.
The "Median Days Homes are On the Market," this metric indicates the average number of days it takes for a single family residence to be sold. In Silver City, New Mexico, the median is 41 days. A lower number suggests a faster-moving market, indicating high demand and potentially competitive bidding situations.
Now, let's explore the "List to Sold Price Percentage." This indicator represents the percentage of the listing price that a home ultimately sells for. In this case, the percentage is 96.3%. A higher percentage suggests that sellers are approaching their asking price, which can be a good indicator for sellers.
Lastly, we have the "Median Sold Price," which signifies the middle point of all the prices at which homes have been sold. In the Silver City market, the median sold price is $274,000. This metric provides an overall snapshot of home prices in the area and can be helpful for both buyers and sellers in determining fair market value.
Now, let's tie all these indicators together. With a relatively low "Months Supply of Inventory" of 3.43, combined with a negative change in inventory compared to the previous year, it suggests a market favoring sellers. This is further supported by the median days homes are on the market being 41, indicating a faster-paced environment.
Additionally, the "List to Sold Price Percentage" of 96.3% implies that sellers are achieving a significant portion of their asking prices, indicating a strong market demand. Finally, the median sold price of $274,000 gives buyers and sellers a benchmark to gauge home values in the area.
In the end, these real estate indicators point to a competitive market with limited supply and high demand. For buyers, it means being ready to act swiftly and possibly pay close to the asking price. For sellers, it signals a good selling environment. However, it is still necessary to choose a suitable listing price based on the median sold price for the area.
Call your local REALTOR® for more information on the buying and selling process.