Today's topic is Selling Odds, which is basically the number of months of inventory on the market.
So, in other words, it is a snap shot of the current demand of home buyers, compared to how many homes are on the market today.
The industry standard of a healthy real estate market is selling odds of 6 months. Anything above 6 months is considered a buyer’s market; anything below is considered a seller’s market.
In the Treasure Valley the record high for Selling Odds was in January 2009 which clocked in over 17 months of inventory according to Data from the Intermountain MLS.
However, the lack of new construction and the growing local demand for the valley’s extremely affordable homes has pushed inventory levels way down in recent months.
As of April 2011, the valley’s selling odds have fallen all the way down to 4 ½ months. Which again, by industry standards, is considered a seller’s market!
But, don’t get too excited home owners, from what I can see; the true seller’s market is for the foreclosure properties. Which often sell within days not weeks.
However, the big take away is that even though the Treasure Valley is still being pummeled by Foreclosures, our supply of homes on the market is low, and our demand is high, which tells me that the worst is likely behind us.
I’m Mike Turner, and this has been your real estate minute.
Mike Turner
Front Street Brokers
208-740-5000
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