October 17, 2023 - By: Kim Clark, AE, GAD
When it comes to understanding the real estate market, there are several important metrics that can help both buyers and sellers make informed decisions. Let's delve into the correlation between these metrics and how they can impact your real estate transactions.
First, let's look at the "Months Supply of Inventory," which currently stands at 4.58 for residential site built homes in Grant County, New Mexico. This metric represents the number of months it would take to sell all the current homes on the market if no new listings were added. A lower number indicates a seller's market, where demand exceeds supply, while a higher number suggests a buyer's market, where supply exceeds demand. With 4.58 months of inventory, it indicates a fairly balanced market, providing both buyers and sellers with reasonable opportunities.
Next, let's examine the "12-Month Change in Months of Inventory," which has increased by 35.5%. This metric reflects the percentage change in the supply of homes compared to the previous year in the County. A positive change typically indicates a rise in inventory, giving buyers more options to choose from. However, for sellers, it could mean increased competition and potentially longer selling times. It's important to consider this change when setting expectations and strategizing your approach in the real estate market.
Now, let's move on to the "Median Days Homes are On the Market," which currently stands at 64 days. This metric represents the average number of days it takes for a home to sell once it is listed. A shorter median days on the market suggests a faster-paced market, where desirable properties are snatched up quickly. Conversely, a longer median time could indicate a more stagnant market or properties that require additional time to attract buyers. Understanding this metric can help both buyers and sellers gauge the pace of the market and make appropriate decisions.
Another important metric is the "List to Sold Price Percentage," which currently sits at 90.9%. This metric indicates the percentage of the original listing price that a property eventually sells for. A higher percentage suggests that sellers are achieving close to their initial asking price, while a lower percentage may imply more negotiation and potential discounts for buyers. It's crucial for sellers to consider this metric when determining their initial listing price, and for buyers to understand the potential for negotiation.
Lastly, let's discuss the "Median Sold Price," which currently stands at $214,750 for residential site built homes in Grant County. This metric represents the middle point of all the sold prices for homes in the area. It gives both buyers and sellers an idea of the market's overall price range and trends. For sellers, understanding the median sold price can help determine a competitive asking price. Buyers can use this information to assess whether a listing is priced fairly or if there is room for negotiation.
By considering these real estate metrics together, buyers and sellers can gain a comprehensive understanding of the current market conditions and make informed decisions. Whether you're looking to buy or sell, these metrics provide valuable insights into supply and demand, market pace, pricing trends, and negotiation potential. Remember to keep a close eye on these metrics as they can fluctuate over time and impact your real estate journey.
Call your local REALTOR® today to learn more about the homebuying process.