Facebook
X
Pinterest
Copy Link
Is it the Right Time to Sell? Here’s the Formula to Find Out!
So, you’re on the fence about selling your home. You’re not sure it’s the “right time” to sell. While many factors influence this decision, one important factor you may not have considered is the current housing market. You’ve probably heard the phrase “It’s a buyer’s or a seller’s market” before, but what does this real estate mumbo-jumbo really mean? In real estate, the housing market is gauged by “months of supply.” Months of supply tells you how many months it would take for all the current homes for sale on the market to sell. As you would imagine – with greater demand and less supply, the market tips in your favor. Generally, a healthy real estate market for both buyers and sellers will have about 6 months’ supply. So, if the number of homes for sale in the area falls below this supply, then the market generally tends to benefit the seller. If the market favors the seller, this could potentially help you sell faster or get more $$ for your home. So, how can you determine if it’s a good time to sell?
Quantifying the Average Number of Homes Sold
To determine if it’s a buyer’s or seller’s market, you must first determine the average number of homes sold per month. To start, pick a market as granular as possible since the market can vary in different demographic areas and neighborhoods – so pick a neighborhood or small area. Now visit www.Zillow.com/homes, select your date range (6 months) in the advanced tab, and in the search bar add your desired area. Make sure that you have “Recently Sold” selected from the drop-down and that the home type is “Houses.” For example, when searching the area, Kettering, OH, there were 459 results or 459 homes sold. Now take the 459 homes sold and divide by the number of months in the supply (6 months). This number is the average number of homes sold monthly for the past 6 months.
Determining Month’s Supply
Month’s supply is determined by dividing the current supply by the average number of homes sold per month. To do this, start with a Zillow search and determine the current homes for sale in the same area. For Kettering, OH, the current number of homes for sale is 250. The next step is to divide the current number of homes (250) by the average number of homes sold monthly (75.63), which equals approximately 3.3 months’ supply. As mentioned previously, 6 months’ supply is considered the benchmark for a balanced market. Since Kettering, OH has had about 3.3 months’ supply in the past 6 months, the market is currently favoring sellers.
Why Consulting a Real Estate Professional is Key
While the above method is a great starting point, it’s essential to understand that the housing market is influenced by many factors beyond just supply and demand. Economic conditions, interest rates, and even seasonal trends can impact market dynamics. This is where consulting a real estate professional becomes invaluable. A qualified real estate agent has access to up-to-date market data, insights into local trends, and experience in negotiating the best deals. They can provide a comprehensive market analysis tailored to your specific situation, helping you make an informed decision about when to sell. Additionally, a real estate professional can offer personalized advice on preparing your home for sale, pricing it correctly, and marketing it effectively to attract potential buyers.
Interested in speaking with a Realtor today? Click here to check out available agents in your area.
