Last Updated on November 9, 2023
A home that isn’t priced appropriately, especially in this market, will sit stagnant. Today, for the first time in many years, the more accurate price gauge can be determined not by what your neighbor got yesterday, last month, or even six months ago, but by looking at active competitive listings.
In light of the shifting market we’ve been experiencing for the past year or so, to better understand today’s real estate landscape, we recommend all sellers dive into these five important statistics.
Days on the market (DOM)
It’s important to understand the trend as it relates to the average days on the market for both sold and active listings.
Months supply of inventory (MSI)
It will remain in a sellers’ market for the foreseen future due to low inventory and increased demand. Locally, the MSI is holding steady, with an average of 3 months of supply of inventory throughout our area. To give you a frame of reference, anything below five months is a sellers’ market, anything from five to seven months is a balanced market, and anything over seven months becomes a buyers market.
Appreciation vs. depreciation
Sellers need to know whether home values in their specific market area are appreciating year over year or depreciating, and at what rate.
Percentage list-to-sale price
This stat provides empirical data about house listing prices compared to sales prices. Price reductions have re-emerged, and understanding the percent list-to-sale price trend is a significant data point in pricing a home correctly.
Number of showings
The number of showings happening in the market of the listing may be the most significant data point, as it demonstrates buyer activity in your market.
Although the market still favors sellers, inventory is rising, which means buyers have more time to make a decision and more homes to choose from.
In addition to these five data points to consider as you price your home correctly, we also recommend that you consider a pre-inspection, and offer buyer assistance in the form of a home warranty, and/or money towards repairs, closing costs, or a mortgage rate buy-down to make your home stand out.
Homes that are positioned and priced correctly are still receiving multiple offers, even in this normalizing market. Partnering with a knowledgeable local market expert will position you to have the best outcome when you list your home.
Keep reading: The complete guide to listing your home
