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I heard on the radio yesterday that where I live has a 12 day supply of houses. I had no idea what that even meant so I did some digging and reading online and I think I understand (I think it means that, hypothetically, it would take 12 days for all the houses currently for sale in my area to sell). I am not sure how they determine that though.
And I am not sure if I understand it correctly or not since what I found defines "months supply of houses" and the radio reporter said "days" instead of "month" which I would have tough he would have used.
What is the housing supply like where you are in terms of days (or months)? And what does this really mean for buyers as well as sellers (assuming I didn't get it right or am missing part of the definition above)? What is a more balanced supply of homes like since it seems really unbalanced right now?
"Supply of houses" means, "How long will it take buyers to absorb all the inventory at the current pace of closings."
The value of the number is diminished when so many houses are selling sight unseen in a frenzy before they actually enter Active inventory, before the Days On Market clocks start up.
In my city, the MLS shows 57 Active listings, and 107 closed so far this month.
At 4.5 closings/day over 24 days, that would be about in line with your 12 days of inventory.
Just checked my 2-city market and we have a 19 day supply right now. That's using the number of closings in the last 30 days divided by 30 to get the daily rate and dividing the current inventory by that rate. If I remove the listings that have been on the market for over 60 days, which indicates extreme overpricing usually, the supply is 15 days.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Here the homes are selling in 4 days on average, and that's because realtors will schedule a time/day 4 days after listing to "accept offers." The median sale price is up to $1,548,000 now, and with interest rates climbing more people are trying to jump in before they go even higher.
In my community, homes appear on MLS just to satisfy requirements, otherwise real estate agents have premium cash buyers lined up before the seller even signed a listing. It's not unusual to see the MLS listing appear, go pending and sold in what seems the same day. Essentially we have a 0 day supply.
Here the homes are selling in 4 days on average, and that's because realtors will schedule a time/day 4 days after listing to "accept offers." The median sale price is up to $1,548,000 now, and with interest rates climbing more people are trying to jump in before they go even higher.
That's about what they are here too. They list on a Thursday, open house on Saturday, offers reviewed Sunday. On Monday it's under contract. But somehow that still equates to 12 day supply. I suppose the few stragglers that are overpriced make the number 12 vs 4. For example, everything in my immediate area pretty much does the 4 day thing except a few one day wonders. But then there is another that's overpriced for the condition it's in. It's been on the market 39 days now and they keep increasing the price. I don't get that house at all. But my guess is it ruins the days supply average.
Here the homes are selling in 4 days on average, and that's because realtors will schedule a time/day 4 days after listing to "accept offers." The median sale price is up to $1,548,000 now, and with interest rates climbing more people are trying to jump in before they go even higher.
That would make it higher than bay area Santa Clara County which shows median home sold price is $1.4M per Norada. This is all of Santa Clara County including more wealthy Palo Alto, Los Altos, Los gatos, Mountain View, Saratoga etc too.
Your area has median sale price $1,548,000? Which area is it?
Btw, I do not live in Palo Alto, but it is showing median price sold at $2,900,000 so there are less expensive areas bringing down the median for the county here. Los Altos is showing $3,600,000. Los Altos are mostly single family homes whereas Palo Alto and Mountain have more condo types.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,662 posts, read 81,403,499 times
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Quote:
Originally Posted by Nasudesu
That would make it higher than bay area Santa Clara County which shows median home sold price is $1.4M per Norada. This is all of Santa Clara County including more wealthy Palo Alto, Los Altos, Los gatos, Mountain View, Saratoga etc too.
Your area has median sale price $1,548,000? Which area is it?
Btw, I do not live in Palo Alto, but it is showing median price sold at $2,900,000 so there are less expensive areas bringing down the median for the county here. Los Altos is showing $3,600,000. Los Altos are mostly single family homes whereas Palo Alto and Mountain have more condo types.
I'm in Sammamish, WA, a city much like Lafayette, CA where I grew up, but our median home is lower, and our median income higher than Lafayette.
9 days up to $750k
15 days $750k to $1M
40 days $1M+
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