A home that isn’t price 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 our shifting real estate market, to better understand today’s market, 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 seller’s market for 2023. In our local market, the MSI just went over 2.8 months for the first time since September 2021. To give you a frame of reference, a six-month supply of inventory represents the shift to a buyer’s market.
Average sale price
It is critical to know what is happening with average sale prices. This is a particularly helpful stat when selecting the right price to market your home.
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
Number of showings happening in the market of the listing may be the most significant data point, as it demonstrates the buyer activity in your market.
Although the market still favors sellers, inventory is rising, which means buyers have more time to make a decision. In addition to these five stats to price your home correctly, we also recommend that you consider a pre-inspection, and offer buyer assistance in the form of a home warranty, or money towards repairs, closing costs, or a mortgage rate buydown 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 this spring.