Statistical information for a real estate market can be extremely important to not only a real estate agent but also for potential buyers and sellers.
I am seeing more statistical information being posted about particular real estate markets, but am curious as to what others - both real estate agents and consumers think is most important and why.
We find statistics that refer to average price (the total of all sold prices divided by the number of closings) that are compared from the current month to the previous month or comparison to previous year. Why do you feel average price is meaningful and how best to compare? Other comparisons could be either quarterly or possibly a rolling average of the previous 3 or 6 month period.
Another statistical reference is made to median price (the price in the middle of sold prices ordered in either ascending or descending order). Again comparisons are made to prior month or prior year. Is this a meaningful statistic to measure the market conditions? Also would be comparisons be better either quarterly or on a rolling average basis?
How are your thoughts about pending sales - are they a good way to measure future pricing as well as market conditions? Today's pending sale will eventually (usually 4 to 8 weeks from contract) become a closed sale.
Is a ratio of sold price to list price a good statistical measure as to market conditions?
Of course, average days on market is another measure to assess market conditions, does this provide valuable information?
I hope that both real estate agents and consumers (buyers and sellers) will express their thoughts about the statistical information that can be provided as well as how they would like to see it presented.
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