The 3 Most Important Stats To Review With Your Realtor

The 3 Most Important Stats To Review With Your Realtor

I think we can all agree that buying a home is one of the most significant investments that a person can make in their lifetime. And yet, as Zig Ziglar once said, “People don’t buy for logical reasons. They buy for emotional reasons.”

Throughout the roller coaster ride that is buying or selling a home, it can be easy to get caught up in the emotional aspects of the process.  But, with so much at stake, it's essential to make informed and logical decisions where possible when it comes to purchasing real estate.

One of the most critical factors to consider when buying or selling a home/property is the state of the local real estate market. Here are three important statistics that you need to know when assessing the health of a local real estate market that your Realtor should be using to help inform your decisions in this process:

  1. Median sales price - The median sales price is the middle point of all the home sale prices in a given area. This statistic is a reliable indicator of the overall market health. A rising median sales price usually means there is high demand for homes in the area. Homebuyers should pay attention to the median sales price as it can affect their budget and affordability when considering a purchase, and an increasing trend of median sales price can indicate overall confidence in the value of that geographic area especially when combined with other indicators like jobs numbers or number of new households.

  2. Days on market - Days on market refers to the length of time that homes spend on the market before they are sold. A shorter time on the market usually indicates a strong real estate market with high demand, as homes are selling quickly (AKA a seller's market). On the other hand, a more extended period on the market may indicate that the market is slowing down and moving into a buyer's market. This statistic can help prospective buyers understand how competitive the market is and make informed decisions when submitting offers.  If a house has been sitting on the market longer, you may have more room to negotiate a lower price or other seller concessions.

  3. Inventory levels - Inventory levels are the number of homes available for sale in a given area. High inventory levels indicate a buyer's market, where buyers have more choices and can take more time to make decisions. On the other hand, low inventory levels suggest a seller's market, where sellers have more power, and prices may be higher. Buyers should pay attention to inventory levels, as it can impact their negotiation strategy and timeline to purchase a home.

While these statistics can provide a general overview of the health of a local real estate market, it's important to remember that they don't tell the whole story. Other factors such as the local job market, economic conditions, and demographic trends can also impact the real estate market. As such, it's essential to work with a knowledgeable and experienced real estate agent when buying a home.

It is our job as real estate agents to provide up-to-date market data and give expert guidance on navigating the buying process to ensure our clients make informed decisions and find the perfect home for their needs and budget.

Keep an eye out for my bi-weekly market report for the greater Park City area, posted every other Monday and please reach out if you'd like to learn more about the market trends we're seeing in Park City real estate!

 
 
 

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