What does a market report mean to me as a seller in Plano, TX?

What does a market report mean to me as a seller in Plano, TX?

Or it could be Allen TX, Frisco TX, McKinney TX, Little Elm TX, Rockwall TX?

I enjoy statistics, data, and what that information can do for me. But I also understand that not everyone is like me. Some might see a graph or chart and wonder “Why do I need to know this?” Or “What am I going to do with this?”

The goal of my blog today is to explain the market reports I publish, from the view of the seller. Below are three of the most common data points that I like to refer to.

(Now, I used Plano TX as an example, but this applies to any market. The market reports I publish contain this same information for your preferred neighborhood.)

Median for Sale vs. Median Sold

• First of all, I will define “median.” Median means that exactly half of the houses are priced below this number and exactly half of the houses are priced above this number.
• This particular statistic shows the median price of houses that are for sale (in red) versus the median price of houses that have been sold (in green).
• As has been the case for the past few years, as a result of the current economy, houses are being sold for below what they were listed.
• As a seller, this means that you need the assistance of a realtor that can provide a Comparative Market Analysis of homes sold in your area.
• It is important to use the data of homes sold, not listed. As you can see, homes are selling below their list price.
• I will assist you, as a seller, to list competitively at the best and most realistic price.
• In Plano, the median price for houses sold was $200,000 in January 2011. This is compared to the median listed price of $232,000 during the same month.
• This means that in Plano, houses sold for 86% of the list price in January 2011.

Supply & Demand

• This data basically displays the number of houses sold compared to the number of houses for sale.
• This is a statistic I use to show approximately how many other houses that you will be competing with.
• In Plano, there were 111 homes sold in January 2011. This is compared to 1197 that were listed as for sale during the month.
• This means that a little over 9% of listed houses were sold during January 2011.
• For those who study supply and demand, this is law #3: "If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity."  So market reports prove this true--there are more houses for sale, prices are lower, and a higher quantity of houses remain for sale in the market.
  

Months Supply of Inventory

• The months supply of inventory is subjective these days. I think that this is a number that can be difficult to predict and use as an indicator of future performance.
• However, I use this as a number to inform you, the homeowner, approximately how many people that you are competing with in the market.
• For example, historically, spring and summer are peak times, so there will be more houses competing in the market.
• In Plano TX there was a 5.5 months supply of houses for sale in January 2011.
  

With me as your realtor, on your side, you can see that I will use the resources I have available to help you list your home.

If you are ready to put your home on the market, contact me today!