I just read the simplest description yet for Months of Inventory. So, here we go:
Months of Inventory are figured out when you find out how many homes sold in the last 12 month period and compare it to how many homes are actively on the market today. If nothing else came on the market, the Months of Inventory are how long it would take for the current number of homes to be purchased, based of the prior year's activity.
A "normal" housing market is defined as six months of inventory. When the number is LESS than 6 months, the sellers have the advantage. There are more buyers out there than there is inventory. When the number is MORE than 6 months, it is a buyer's advantage market. There is too much inventory for the number of buyers available.
So, where does Henderson stand? Overall, the Henderson, CO, market is at 3.6 Months of Inventory. Sounds really great if you are going to be selling. But HOLD ON!
The numbers should be broken down further to make more sense. To truly get a feel for whether now is the time to list your Henderson home, it makes sense to analyze how these break out:
Price Category: Num Sold: % of Sales: Num Active: MOI:
<85K 0 0 0 0
85K-135K 1 .8% 0 0
135K-210K 55 43.7% 11 2.4
210K-315K 66 52.4% 17 3.1
315K-460K 4 3.1% 6 18
460K + 0 0 4 *
For those homes listed above 460K, time will tell how quickly they sell.
It is safe to say that if you are thinking of selling your home at a listing price between 135K and 315K, this is your market. With such low supply, buyers are going to be anxious to purchase houses at this price level.
Be sure to consult with a REALTOR to find out what your most likely sold price will be!
If you are looking to upgrade, now may be the best time yet! If you have a house to sell in that price range and are looking to buy a bigger, fancier, or better house... as long as you can get the loan, these properties are a steal!
You can see what's available in any price range by visiting my website: http://www.jprestwich.yourcastle.org/