How good of a seller's market is it? Can it be for real?

Good morning! It is a beautiful Friday morning and I am trying to get this written before my munchkins wake up, so let’s get right to it!

A great many of my peers in real estate have been beating the drum of low inventory and it’s a seller’s market. I’m fairly analytical, so I want to dive into the numbers and see if they were on point or if they were just using “sales tactics” to work their sphere.

To calculate months of inventory (MOI), I first needed to calculate the burn rate, or homes closed in the past 12 months and then average that out. Once the closed rate is calculated, I would take the current number of homes active and for sale and divide by the closed rate to get the MOI.

There has been discussion on what a balanced market looks like, but experts have agreed that roughly 5 to 6 months of inventory is fairly balanced and does not favor either the buyer or seller directly.

Let’s jump in to the numbers and see what my local market is doing.

Lapeer

• Average Closed Home Sales per month - 40

• Current Inventory - 102

• MOI is 2.5 months

Davison

• Average Closed Home Sales per month - 35

• Current Inventory - 55

• MOI is 1.5 months

Woah!! You have heard agents and housing experts saying that it is a seller’s market and I just proved it by the numbers. I cannot tell the future, but I don’t foresee this changing any time soon in my local market.

Food for thought if you had been contemplating selling your home. My weekly market update goes out today at 11:30 with tons of useful information and I even worked in a Lil’ Jon reference as well. Don’t miss it, make sure to subscribe by clicking the My Newsletter tab.

Cheers to the Weekend!