If you intend to buy or sell a house in a market, it is an advantage to know the latest trends. I have heard that it must be said that the housing market is softening, because there are 20% more homes on the market today, compared to the same period last year. This is not necessarily true, because he sees only express. Certainly an increase in supply could lead to a softening market. However, the fact of the matter, that if at the same time there are 100%most buyers today, compared to the same period last year, the market is not softening.
Economics 101 teaches that to find the balance to determine the price and quantity, we need to know the supply and demand. Unfortunately, the amount of homes on the market today, compared to a year ago, to provide in this case only. To truly understand what kind of market we are now we need to know the question. To do this, check out "provision month."
What is months? Provide Basically, the ratio of inventories to sales month supply is operating. And what he tells us, is how many months, the stock of homes for sale would last, if sales continue at their current pace.
For those of us who have to find a formula:
The number of homes for sale on the market
—————————————– = Months supply
Number of homes sold, the month
* Important note – if the data is the number of homes sold, for a period other than a monthRemember to take an average month. The months of supply, the offer is 2 months.
What do the numbers?
Provide a notice in the '89 U.S. housing market (buyers market saw) about 7 months. For those of us who are familiar with recent years, '01 to the United States provide an average of just under 4 months. But hot markets like Las Vegas, Boston, and parts of Florida and California would see a 2-month supply in recent years.
So the world4-5 months of supply is about average. Further on stray into numbers means that it is more of a seller's market is. The higher the number, then the more the market favors the buyer.
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