Market Statistics for Sellers
The value of your home is directly related to a number of factors that push and pull on the market. We will determine the list price and an anticipated sales price for your home based in large part on these market conditions. These market conditions combined with the unique characteristics, condition and location of your home will be the most important aspect in determining what a buyer will pay for your home.
Supply and Demand
In it's basic use in real estate, supply means inventory and demand means sales volume
The supply used to help determine the value of your home is likely to be different that the supply used on my home, but only on some levels. There is a great deal of information that can be gathered by selecting different sets of supply and making correlations from these different sets of numbers to create a customized supply and demand equation that is tailored to your home. Real Estate is of course local, but local means several different things. Is it only your neighbnorhood? Is it all homes in Metro Atlanta or just the smaller city or area where your home is located? What about school districts and price points and bedrooms and bathrooms? We will have to look at your home on an inidividual case by case basis to get this right.
Since Atlanta was the fastest growing population of any major city in the country during the first decade of the new millenia, our market is affected by other local markets. If homeowners can't sell their homes elsewhere, they become renters here instead of buyers. This also plays into the demand for Atlanta real estate and must be considered as well.
Absorption Rates
This is really an industry term sometimes thrown around on the news which converts the supply and demand into a months supply of homes. If there are 100 homes for sale and on average 10 homes sell per month, that would make the absorption rate 10 months. This number does not account for new homes coming on the market. Anything under 6 months of inventory is traditionally considered a sellers market.
Sales Volume
Aside from sales price, this is the most incorrectly reported real estate market statistic by most media outlets. It's incorrect because news reports frequently tell us how one month we have had more or less sales than the previous month when they should instead be comparing the same month from a previous year. What happened last month is irrelevant in any context when it is considered against something other than the same time period than period of a previous year. Historically, June is the busiest sales month in Atlanta so if they report July sales volume is down compared to June this is not a problem - it is supposed to be down. It's only a problem if it is down from the previous year.
Sales Price
Sales price (and it's change) can either be measured as a median or an average. The median sales price of 3 homes is the price of the middle home. The average price is the sum of the prices of the three homes divided by the three. The median is typically recognized as the more accurate of the two numbers. There are numerous ways used to determine sales price. The Case-Schiller Index is considered to be the national leader in the market. When I cross check the Case Schiller Index against actual sales prices locally, they are close, but, for you as a seller, I can give you something more accurate because I can select the correct set of homes to use for a comparison to find a result more appropriate to your specific home.
Contact us to Learn More - 678.389.4777 or toll free at 800.658.0589
If you are ready to talk with us, we are ready to sit down and go over how these market statistics will impact the value of your home. there is no obligation so don't wait.
