It’s official guys. I’m allowed to go around and call myself a real estate agent again!!
What? You thought I was already an agent? Well I was, technically, but I accidentally let my license expire and when you do that you aren’t allowed to practice real estate until you get it reinstated.
Welllllllll, can we talk about how the Real Estate Commission was 12 WEEKS behind on their paperwork when I mailed it in? The worst part about finding out they were 3 months behind was that I waited on hold for 40 minutes to hear that!
Most of you know I’m a serial entrepreneur. At one point over the last 4 years I had 7 businesses up and running at one time. But I quickly realized one person can’t handle 7 businesses (without help at least) so I decided to lay a majority of them on the back-burner and focus solely on my Real Estate career and Dallas Contractors – our remodeling business.
But that was three months ago and I wasn’t allowed to practice real estate until my license became active again. Well it’s active and I am beyond pumped.
So in today’s blog post I’m going to go over factors that make a market a “seller’s market” since that’s the market I’m currently in and that a lot of people across the country are in!
What is a Seller’s Market?
Before I continue I think I need to explain exactly what a seller’s market is. It’s basic economics really. A seller’s market simply means the demand for houses exceeds the supply. This could mean there are not enough houses listed or there are too many buyers in the market.
What Makes a Seller’s Market, a Seller’s Market?
Inventory in a Seller’s Market
One statistic that shows when it’s a seller’s market is the total inventory on the market compared to the same period the previous year.
For example, in the chart below you’ll see that in July of 2017 we had almost 3,500 homes on the market compared to just under 3,000 this July! That’s a lot less homes for sale one county!
Inventory accumulation means how many months worth of supply we have. So in July of 2017 we had 3.7 months worth and this July we had only 3.3 months worth.
Settle Price vs Original Price
This is a big one in a seller’s market! What I’m talking about here the original price the home was listed for versus the price the home actually wound up selling for. Homes usually sell for 94-97% of what they were listed for. For example, in Montgomery county we were selling at 97.4% of list and this year we’re up around 98% so far!
Am I boring you yet? Because I could go on and on about the numbers… and I will.
Increase in Settled Listings
Another statistic that helps support when it’s a seller’s market is the settled listings. In all categories (residential, lots, land and farms, multifamily and commercial) there was an increase in settled listings. That proves people are buying more and more houses, which is good for sellers! This statistic combined with the decrease in inventory I talked about above makes it a prime time to sell a home. 
Average Days on Market
Another big factor that can help prove it’s a seller’s market is the average number of days homes have been on the market. In a seller’s market, houses sell quick which is often why you’ll hear buyer’s complaining that they can’t find a house in a seller’s market! If they’re priced right when they are listed, they are sold quickly.
In Montgomery County our average days on market has decreased by over 10%!
There are numerous other factors that help determine when it’s a seller’s market besides the ones I listed above. The average and median sale prices of an area, especially if they’re going up help prove a seller’s market.
It’s also wise to tune into what people in your local area are saying about real estate. I love when I hear the average person say “man, houses in my neighborhood are selling fast!” When people who aren’t even in real estate start talking about real estate you know something is going on in the market.
So that’s pretty much all I have for you in today’s post, I’ve actually been having some writer’s block lately and can’t seem to put my thoughts to paper! So thanks for bearing through this very statistic heavy post! See ya next week!
And if you don’t want to wait until next week to read another post, check out some of my favorites below!
Difference Between Pre Approval and Pre Qualification
How to Get a Good Deal Through the MLS
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