As a real estate professional, I get asked all the time, “How’s the market?” and the answer is simple, not easy. There are several indicators that we use to determine market conditions…home prices, days on market and months of inventory. Months of inventory is a term used in the real estate world that indicates the amount of time it would take for the market to absorb the current inventory at the rate that homes sold in the last year. In an effort to provide you the most current data on our local market, we will be posting the current inventory levels monthly.
Next questions is what does that REALLY mean? It is simple supply and demand, if there are 0-4 months of inventory, that is a sellers market. The buyer demand is high and homes are not sitting on the market for too long and you are likely to see multiple offers. A healthy, balanced market has 5-8 months of inventory. Inventory levels are at a level that point where buyers have a choice yet homes are selling at a nice pace and prices are stable. A buyers market occurs when there are 9 or more months of inventory in a certain location. In this case, home values may decrease a bit to attract buyers and be the next home chosen.
If you’d like a more specific analysis on your home, please let me know and we will be happy prepare that!
Current inventory levels in The Woodlands as of 2/11/16:
Data received from har.com