Where is the Market Focus in April vs March?
For anyone who rely’s on the start of each month to see what’s going on in the local housing market, stats like median home price and days on market provide some context, but leaves a lot still to the unknown. Unless something drastic has happened in a short period of time, it’s hard to determine where the market focus has shifted, if the market is under performing or over performing, and what the median days on market is for the particular price point a seller or buyer may be especially focused in.
While these graphs won’t answer all those questions, what it does tell you is how has the market shifted from the end of March to the middle of April. Particularly in regards to the active market (homes currently on the market) and where buyers are currently the most and least active.
Let’s start with the Active Market (blue bars). Those price points with the blue bar in negative territory (lower half of the chart) is showing where the available inventory has become less available since the end of March. Those with the blue bar in positive territory (top half of the chart) is showing where more options continue to come available.
Now the Pending Market (orange bars). These are the homes that have gone under contract, but not sold yet. Like with the active market, those with the orange bar above the line have seen an improvement in buyer activity while those below have been a drawback in buyer activity.
So how can one take this information and use it to their benefit?
First, it will depend on whether or not you’re considering buying or selling.
If you’re a seller, those price points with the blue bar below the line and the orange bar above the line means a high probability of success. Less competition and more buyers is always the balance a seller is looking for.
If you’re a buyer, you are hoping for your price point to have the active market growing (blue bar in the upper half) and the pending activity (orange bar) below the line. This means the number of options continues to improve while there are fewer buyers also shopping in the same price range as you.
Regardless of what these graphs are showing however, one rule will always remain the same: a home that’s well priced and prepared for market will sell quickly. Even if it’s in a price range with growing competition and fewer buyer activity.
If you have questions about what this information means for you as a buyer or possible seller, let me know.
