Local Market Reports in Palm Beach County
Buying or Selling in Palm Beach County? Make Sure You Study the Reports for the Area You are Looking In
Knowing the local market can help you make better decisions and be more informed whether you are a buyer or a seller. By studying these reports you can understand if the market is currently for buyers (buyers market) or for sellers (sellers market). These market reports will help you figure out how much flexibility and negotiation power you have.
If You Are A Seller, these market reports will help with:
- Pricing your home
- Local Demand
- Local Supply
- Intelligence – this is taken for granted but when talking to a Realtor having market intelligence is very important
If You Are A Buyer, these market reports will help with:
- Price range
- Local Demand
- Local Supply
- Intelligence – again, knowing how to talk to a Realtor is important
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Contact Us For Your Local Market Reports
If you need help translating any of the data in your market reports, reach out to us for a over the phone walk through or schedule a time to meet with us and we will explain everything in depth.
To help here are two terms in these market reports that we think you should be familiar with.
Inventory of Homes for Sale – This is the number of homes that were available for that specific month of the year.
To calculate Inventory of Homes for Sale, take the Closed Sales and multiply it by the Months Supply of Inventory
This is an important number because it is congruent with Closed Sales and Months Supply of Inventory. If you see that the Inventory of Homes for Sale does not match mathematically with Closed Sales and Months Supply of Inventory; then you have a bad report.
For example, lets say you have a Inventory of Homes for Sale of 200, Closed Sales of 50, and Months Supply of Inventory of 4 on a report. This is good and all makes sense because 50 × 4 = 200
But lets say you have Inventory of Homes for Sale of 300, Closed Sales of 50, and Months Supply of Inventory of 4 on a report. Well this doesn’t make sense because 50 × 4 does not equal 300
Months Supply of Inventory – This is the number of months that the local market could sustain if no more homes were to be sold in the following months but the Closed Sales remained the same.
To calculate Months Supply of Inventory, take the Inventory of Homes for Sale and divides it by the Closed Sales.
This is a very important number because it tells you not only how fast your home could sell for but also what type of market it is (sellers or buyers). A lot of people have their own opinion on this but for a simple rule of thumb, anything below 5 months is a sellers market, anything above 5 months is a buyers market.
If we took the same numbers from above it would look like this to calculate, 200 ÷ 50 = 4 Months Supply of Inventory.
This can give you a picture of who has more negotiating power at the table.