The most common question REALTORS® hear is, “How’s the market?” I suspect that if you asked 10 people this question though, you’d likely get 10 different answers.
There are so many ways to view and interpret data. Are we comparing areas? Home styles? Price ranges? Month to month or year over year? All of these things dramatically impact the findings so, BE CAREFUL in believing everything you read or hear!
Chris and I work hard to keep you informed on this blog with weekly hard data, monthly summaries and analysis. We’re always looking for better ways to understand market conditions and trends: daily monitoring of sales, traffic in open houses, multiple offer situations, active price ranges, sale-to-listings ratios, new home sales office activity, agent chatter, sale prices, listing prices… they all go into the mix.
One of the trends that I think is important, is the relationship of the number of new listings coming onto the market versus the number of sales. There are seasonal trends but usually, both listings and sales will go up or down in some degree of concert. This method over-rides that seasonal effect.
As I mentioned in a previous post , it is an easier way to follow market trends. You’ll see a trend line on this chart. When the two black lines start moving toward each other, it could be considered a strong signal that the market recovery is underway.