How’s the Market answers your questions with real time market statistics – updated weekly from Altos Research. Please call Sally English, Associate Broker, Realty Associates of Atlanta for answers to your specific real estate market questions. 404.229.2995
“Inventory” is simply real estate lingo for “the number of homes for sale.” This stat shows you how much supply is available in the market you are researching. Inventory levels can ebb and flow frequently due to seasonal effects. There’s usually more inventory on the market in the spring-time as the natural rate of real estate activity picks up during this time of year. Alternately, there’s generally less inventory in the Fall or Winter as real estate activity slows.
Price Per Square foot:
Price per Square Foot is a measure of value. Think of this stat as answering the question – “How much house am I getting for my money?”
Median is the midpoint between high and low. Median is not the same as Average.
The real estate industry generally uses “Median Price” instead of “Average Price”.
Because a couple of high-end or low-end properties in a single zip code or city can skew the Average Price pretty quickly, using Median gives a more accurate depiction of local price levels.
Median Price is often a very good proxy for indicating real-time market activity.
Sellers in a market, with the help of their local real estate agent, will price their home according to other similar homes in that market. While this isn’t a perfect science, most agents and sellers tend to price their homes in close to the price where it will eventually sell. As the median price changes, this can indicate a couple of key market movements:
1. A rise in median price means that sellers are responding to more sales in their local area which means that the local market might be “strengthening” or getting “hotter” – favoring sellers, so they will ask more for their home. A fall in the median price might indicate the opposite – few homes selling at the current price levels which causes homes on the market to drop their price and for new homes on the market to price more aggressively.
2. A rise in median price could also mean that homes at the lower part of the market are selling and leaving the market. This means that the remaining homes on the market are at a higher price point, which causes the aggregated median price to rise.
Market Action Index Definition (MAI)
MAI: We developed the MAI so you immediately know if it’s a Buyer’s or Seller’s market.
30+ indicates a Sellers market.
The Market Action Index (MAI) illustrates the balance between supply and demand using a statistical function of the current rate of sale versus current inventory. An MAI value greater than 30 typically indicates a “Seller’s Market” (a.k.a. “Hot Market”) because demand is high enough to quickly absorb available supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a “Buyer’s Market” (a.k.a. “Cold Market”) where the inventory of already-listed homes is sufficient to last several months at the current rate of sales. A cold market will typically cause prices to fall.”
Keep in mind that an MAI value close to “30” probably means that the local market is balanced or neutral. So if the MAI for your local market is somewhere between 27-33, then it’s likely to be either a buyer’s market or seller’s market based on the individual street or home area that a particular property is in.
Sally English offers a free market valuation of your home. Find out how much your home is worth in this market. Sally English is an Atlanta real estate agent specializing in homes and neighborhoods convenient to Emory University and the CDC.
Zip code market reports are real time values from Altos Research and help give an estimate of home values. Call Sally English at 404-229-2995 to find out how these statistics relate to your homes value.
If you are interested in listing your home in zip codes 30033, 30084, 30329, 30340, 30341, 30345 please call Sally English 404.229.2995. Sally will tell you how to get you the most dollars with the least amount of pain when selling your home. Check out our Recently sold homes by Sally English and the English Team and you will see we have a great track record of success. Our expertise is unsurpassed in Northlake, Lakeside, Emory, CDC, Decatur, Tucker, Chamblee and Northeast Atlanta neighborhoods.
Do you want to buy a home in zip codes 30033, 30084, 30329, 30340, 30341, 30345 ? Interest rates are low market reports show home values are on the rise. Call us and find how we give home buyers an edge in finding homes BEFORE THEY HIT THE MARKET.