What Are Market Reports And Trends?

As a Real Estate Broker we always seem to be talking about market reports and trends. But what does it really mean to the consumer.

Well market reports tell you a lot about a neighborhood you may be considering to purchase a home or sell a home in. It can make a difference in what you offer for a home as a buyer or a seller. When you read about market reports and trends the items you are looking for are sale prices of homes. Have they trended up or down over the past few years and months? How many days are they on the market before they sell? How many homes are for sale in the area comparable to the one you are looking at or selling? How many similar homes have sold in the past 12 months? These questions can tell you a lot about a neighborhood and what to ask for a home or offer on a home.

On sale prices of homes; are home prices falling, rising, or staying relatively the same. This is a huge indicator of how the market is doing in that area. No two areas are going to be the same. As economists like to blanket cities as a whole certain pockets do better than the average and others worse than the average. You need to be aware of this when you are looking to buy or sell a home in a certain neighborhood.

Days on the market can play a role in the pricing of a home. Some subdivisions or areas homes tend to sell quickly (by today's standard) and others homes can be on the market for a longer period of time. This is probably more important to someone looking to sell their home. It will give you a guage that if you are in fair market value for the area on how long you can expect your home to be on the market before it sells.

The amount of homes in an area plays one of the biggest factors in selling and buying today. A balanced inventory is when there is enough homes on the market to sustain a six month supply of sales based on previous year sales. If there is less then it is a seller's market. If there is more then it is a buyer market. We all like to see homes sell quickly but this is an average that economists and Realtors alike agree equals a balanced market.

That is why knowing how many sold in the past 12 months with the available inventory will give you a good sign if you are in a postion of strenght or not in the area.

There is my two cents on what market reports and trends are designed to tell the average consumer who is thinking of buying a home or selling a home.

Dave diCecco

Realtor/Broker

www.davedicecco.com