Ever heard the terms “seller’s market” or “buyer’s market” when talking the market in real estate? In general, if things seems to be selling quickly and for a lot of money, we tend to assume we are in a sellers market, and if houses are sitting for long periods of time, and are deeply discounter, we assume “buyers market”.
There is actually a mathematical equation that helps us determine what type of market we are in. If you take the number of active listings in an area, and divide into that the number of sold homes, you will come up with the “months of supply”.
Total Active Listings / Average Monthly Sales (last 6 months) = Months of Supply
For our area, it is: 2924 active listings / 1632 average sales = 1.8 (rounded)
A “normal” market is 6 months supply, and we are at 1.8 months supply. Definitely a “sellers market”!
If I can help you with any questions, if you are looking to buy, to sell, or just tipping your toe to see how the water is, please do not hesitate to call or email me. Taking time and preparing, learning, getting a sense of how your numbers line up, it very important. One of the most decisions you can make from a financial prospective is buying or selling a home!
David J Hebel, Realtor
The Sanders Group of Hometown Realty
5326 Twin Hickory Rd
Glen Allen, VA 23059
Cell (voice or text): 804.672.8045