3 Stats to Closely Monitor When Selling Your Home in a Changing Market
The most common question I hear from home sellers is “how’s the market doing?”
Home sellers want to know if now is a good time to sell and how their home will fare in comparison to other homes on the market. The answer isn’t always clear cut, but some key statistics can give you a better idea of where the market is heading and how to price your home accordingly.
Here are 3 stats to closely monitor when selling your home:
1. Days on Market (DOM)
The number of days a home spends on the market is a good indicator of market conditions.
In a seller’s market, homes tend to sell quickly, often with multiple offers. Data from The National Association of Realtors (NAR) reveals that in such a market, homes generally sell for an average of 18 days.
If you see listings staying on the market for longer periods (30 or more days) then that’s an indication that it’s a buyer’s market. In this type of market, buyers have more negotiating power and homes often sell for below the asking price.
As a seller, you should use DOM to help price your home accurately. If you price your home too high, it’ll likely sit on the market for a longer period. On the other hand, if you price it too low, you may not get the return on investment (ROI) you desire.
2. High Inventory (More Homes for Sale)
Inventory gauges the number of homes on the market relative to buyer demand. It’s important to know the current inventory level in your market because it gives you an idea of how quickly your home is likely to sell.
If there are more homes for sale than there are buyers, that’s a sign that the market is shifting from a seller’s market to a buyer’s market. This is what is currently happening in many markets across the U.S including Texas.
When there are more homes for sale, buyers have more options and can be more selective. This means that sellers may need to be more flexible on price just to attract buyers. If you are selling in a market with high inventory, you may need to lower your price just to be competitive.
3. Price Drops (Price Reductions)
If you see a lot of price drops in your neighborhood, it’s generally not a good sign. It could be an indication that sellers are getting more desperate and may eventually have to lower their prices even more just to get buyers interested.
If you do see a lot of price drops, don’t panic. It’s still possible to sell your home, but you may need to be more flexible on your own asking price. Consider doing so sooner rather than later to avoid getting caught in a race to the bottom.
Sell Your Home With a Texas Real Estate Broker
As a full-service Flat Fee Texas real estate broker, I offer my clients the latest technology and end-to-end support from contract to close. My services are designed to make selling your home easier—and get you the best possible price. Reach out by filling out the form on this website to learn more about how I can help you.
