Questions I get asked a lot are, “how’s the market,” and “how long are homes taking to sell?” They’re usually asked by homeowners with plans to sell sooner or later. Selling your home is a big decision and before listing your home for sale you should ask these and many other questions.
Reasons for selling your home will vary and it’ll determine the timing and strategy, but if you don’t need to sell immediately start by putting a plan in place that includes tracking important market stats and asking important questions.
“Why should I track market stats ongoing, aren’t they only important at the time you’re selling?” Local real estate markets shape themselves and if you monitor them closely you can predict the shape they’re taking and where the market’s heading. As an example, if average home prices are dipping lower each month you might plan to list your house quick and price competitively so you sell before prices decrease further.
Below I’ll point out the most important stats to watch and I’ll combine them into a report card to answer some of the important questions.
The three most important stats to pay attention to in your local market are:
- number of sales – is the total number of home sales increasing or decreasing?
- average prices – is your market seeing an upward or downward price trend?
- inventory levels – what is your local market’s M.O.I. (months-of-inventory) rate?
These stats are important because combined they give a glimpse at the state of the market and the direction it’s taking. Read more about each below.
If sales have been increasing for any length of time it’s probably a nice time to sell. If total sales are decreasing you’ll likely have to price lower than you should.
If prices are dropping in your local market maybe it isn’t the best time to sell. Or, maybe you’re scared they’ll drop further and you want to sell before that happens.
I personally think the months-of-inventory rate in your local market is the most important stat to be aware of. Of the three stats mentioned here, inventory levels can indicate best what direction the market is heading. If listings are outpacing sales ongoing, prices will decrease. However, the opposite will increase prices.
Based on the three stats above that I track and post each month here at www.HomeScope.ca I’ll put together a market report card to help sellers determine the best time to sell. If you do have to sell, the report card will point toward the correct strategy to use.
As of April 22, 2019, and based on the current stats above, Red Deer
sales numbers are only better than the same month a year prior but worse the preceding months. This past month average prices were down in the 1, 4 and 12-month averages but it’s maybe less serious considering they were trending upward the last couple months. Inventory doing reasonably well.
Current report card score is C
A report card score of C indicates a less than positive time to sell your home in the Red Deer market. This doesn’t mean homes won’t sell right now because many are, however, the homes selling are the ones priced competitively and marketed most aggressively.
For more information on the Red Deer real estate market report card for sellers call or email Blake King (403) 350-7672 or firstname.lastname@example.org. Blake would also be happy to prepare a specific market report card for your area.