Graph 1: Supply and Demand
There are 3 pieces of information in the Supply & Demand chart. The first is the supply of homes for sale over a thirteen-month period.
This is shown with GREEN bars (SUPPLY). The second is the number of homes sold in BLUE bars (SOLD). The third is the number of
pending sales , shown as a RED line (UNDER CONTRACT). This chart allows us to compare the most recent 3-months activity with the
same period one-year ago.
The Supply & Demand chart is utilized to help determine who is in the driver’s seat: the buyer, the seller or neither party. This is commonly
referred to as a buyer’s, seller’s or balanced market. The type of market is determined by the supply of homes -in months. This is calculated
by dividing the # of homes for sale by the # of homes that are sold.
Graph 2: Days on Market
The BLUE line denotes the average percentage of the current listing price the Seller sold his or her home for. We call this “sold to
list price percentage”. In other words, IF IT WERE AT 99%, the average seller has only had to discount their listing price by 1% to
attract a buyer. The listing price refers only to those homes that are closed, not average list price for homes still for sale or in contrace (pending).
The YELLOW bars show how long the property has been on the market before it received an acceptable offer. We call this
“days on market”. Days on market is based on homes that have closed already, not homes that are still pending. We do not count
all previous listing periods because they did not result in a sale. Also we do not count the time in escrow.
Graph 3: Average Price
The GREEN line denotes the average price for all homes for sale in a given month and a given area. The RED line denotes the
average price for all homes that sold (closed) in the same month and area.
Graph 4: Months of Inventory
The BLACK graph line denotes the months of inventory that were available in a given month/year.
This is found by taking the number of homes that were for sale in a given month and comparing
it to the number of homes that accepted an offer in the same month.
Please don’t hesitate to give me a call if you would like to discuss these charts or if you would like more specific information for your neighborhood. I’m always happy to share information when I can!