I suppose the most frequent question posed to a Realtor is ‘how’s the market?’ I think one of the best ways to view it is by a statistic called ‘month’s supply of inventory’. In other words, at the current rate of sales, it would take that many months to clear all the current inventory.
A stable real estate market is defined as 5 to 6 months supply of inventory. If it’s less than 5 months it is a ‘seller’s market’ and if it’s more than 6 months, it’s a ‘buyer’s market.
If you follow this blog, you know I do monthly market updates for 10 areas in Oklahoma City and Edmond and I show the month’s supply of inventory for those areas. But today I decided to take a look at the entire Oklahoma City market and analyze it by price range. The results are startling.
What Does This Mean?
Under $50,000: congratulations! Your home should sell quickly at a good price.
$50,000 to $500,000: It’s a buyer’s market. You need to price your home aggressively and make sure it presents well to stand out from the crowd.
$500,000 and up: It could take nearly 2 years to sell your house. You need to be very aggressive in your pricing, and make any price reductions early and aggressive. I you try to chase the market, you’ll either not sell or sell for much less than you could have.
Under $50,000: It’s a sellers market. You won’t see lots of price reductions or seller concessions. You can easily get into multiple offers on good property.
$50,000 to $500,000: Look for the values in pricing. You can expect seller concessions.
$500,000 and up: You should really be able to get a deal here. Sellers are having to make large price reductions and/or concessions to make a deal.