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!