2019 Real Estate Market Analysis | Collins Group Realty Results_Market Report 2019 | Page 5

HISTORICAL MEDIAN PRICES BY AREA
MLS Area/Neighborhood
DEFINING A BUYER'S AND A SELLER'S MARKET
Perception is often reality in this arena, and one's sense of how
the market is doing can vary from story to story and day to day.
So, how can you really tell what kind of market you’re in??
We’ve determined that the best indicator of a market’s strength is
its Monthly Housing Supply (MHS, for short). The MHS refers
to how many months it would take to sell all of the properties
currently listed in a market-area (assuming no additional listings
come on the market) based on the current Absorption Rate
(ie., pace of sales) for that particular area.
Conversely, if the MHS drops below 3 months, sellers tend to
have the advantage due to lower inventory amid higher demand.
So, it really is more of a science than an art...and it takes an
honest study to determine the type of market you’re experiencing.
Time, research, and market experience have shown us that
anywhere around a 3 - 6 MHS is a Balanced Market where prices
are fairly stable. However, if the MHS rises above 6 months, it
indicates a Buyer’s Market, where buyers have more selections
and control.
OF
NOTE:
The monthly housing supply varies within each neighborhood and can shift in a short period of time. We're always happy to
share with you the most up to date information for your specific neighborhood... Just give us a call. [phone]