“How’s the market?” I get this question EVERY time someone asks what I do for a living. Well, the answer is simple, but not necessarily easy. There are several indicators that we use to determine market conditions…home prices, days on market, inventory levels and something called “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 have sold in the last 12 months. In an effort to provide you the most current data on our local market, we will be posting the current inventory levels frequently.
The next question is – what does that REALLY mean? It is truly a 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 and the inventory of available homes are at point where buyers have a choice, yet homes are selling at a nice pace where prices remain 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. The condition of your home is crucial when the months of inventory begin to rise. More on that next month!
We all hear news about the national market or even the city market but honestly, real estate is “hyper-local” so if you’d like a more specific analysis on your home, please let me know!
Here are the current levels in The Woodlands, TX as of 1/1/19: