Is It A Buyers Market or A Sellers Market?

Numbers are  tricky.  They can tell you a lot and they can fool you too.  For example, you read articles, watch talking TV new bobble heads and listen to people talk about National Average Sales Prices, Housing Starts, Big City Foreclosure Reports, etc.  The relevant reality is, real estate is hyper local.  It doesn’t matter what is happening in San Diego, Sacramento, Phoenix or South Beach, what matters is what is happening in your neighborhood. Period.

Monthly, we release a collection of reports for The Woodlands TX.  Reports include statistical data on Average Sold Price, Months Supply Of Inventory, Median Sold Prices, Average Days On Market, Broker Market Share and more.  But here’s the deal, even in a tightly defined geographical community like The Woodlands, averages only give you an general idea of trends.  What really matters is what’s happening in your neighborhood and your price range.  If you really want to know what impacts the specific price of your home, call your favorite Realtor and as them to do a market analysis for your specific property.  

Here’s an example of what I’m talking about.  This evening, at 8:16 p.m., I ran some statistical Months Supply Of For Sale Inventory reports using our Houston Association Of Realtors, Multiple Listing Service.  This data is for single family homes in The Woodlands TX.  The Months Supply Of For Sale Inventory for all price ranges is 6.2 months.  Here’s the by price range breakdown.  Keep in mind, while this snapshot provide a more refined picture, what is happening in your neighborhood could very well be different. (Oh, just to be clear, Months Supply Of For Sale Inventory is how long it would take to for the current For Sale inventory to sell if no new inventory came on the market and the velocity of sales remained the same.)

Price Range                        Months Supply Of Inventory

$000,000 – $200,000                                      3.2

$200,001 – $300,000                                         5.5

$300,001 – $400,000                                        6.2

$400,001 – $500,000                                        7.1

$500,001 – $600,000                                       7.3

$600,001 – $700,000                                      7.0

$700,001 – $800,000                                     15.0

$800,001 – $900,000                                   12.4

$900,001 – $1,000,000                                 15.5

$1,000,001+                                                       23.6

What’s It Mean?

Real estate economists believe that 6 months supply represents a balanced market.  A higher number means it’s leaning towards a buyers market, less of course would be a sellers market.  If you’re a seller and your sales price is under $400,000, you’re in fair shape.  The more expensive the home, the more competitive the market.  Things that effect salability and competitive positioning of the property include, marketing, merchandising/staging/presentation and pricing. Tweak and amplify those three factors and you’ll be one of the successful sellers attracting a qualified buyer.   Ignore one, two or three of the salability factors and the property will languish.

As I shared earlier, to understand what your specific situation is, contact your favorite Realtor.  Also, take a look at this collection of Real Estate Reports, they are The Woodlands general in nature, but you’ll find the Broker Market Share numbers interesting.  Prudential Gary Greene is the leader above $250,000 and the higher the price range climbs the more dominant and succeful we are at matching buyers and sellers.

If there’s anything I can do to help or if you have a question, give me a call:  Ken Brand 832-797-1779