If you receive Stolfo Real Estate’s Market Pulse reports, you might find it valuable to learn more about the details of our methodology on the various topics we report on:
What’s the significance of “pending” sales?
Pending sale data gives an indication of upcoming sales that have not yet closed. In other words, it’s the most real-time information available. In contrast, tracking closed sales reflects buyer demand that’s usually several weeks to several months old. Pending sales provide a preview of what closed sale data will look like in the near future.
Other notes:
*The MLS doesn’t have a pre-sold classification in the data. I manually extract this estimate by looking at the pending sales that had approximately 0 days on the market.
What’s the significance of “homes for sale”?
While the pending data gives a look at current demand, the number of homes for sale looks at the supply. The number of homes for sale can be a leading indicator of the overall health of the economy and housing market. It’s important to note that the Boise real estate market has seasonal fluctuations. Meaning, historically there are more homes for sale in the spring/summer and fewer homes for sale in the fall/winter. So looking at the number of homes for sale should usually be balanced with how that figure compare to similar time periods in previous years as well as the current demand in the market place for a clear picture of it’s significance.
Other notes:
*The number of homes for sale data is a particular snapshot during, or up to a week after the referenced date range.
*We have limited our data analysis to single-family homes, the largest category of homes, as we believe that it offers the most representative view of the overall housing market.
*To provide a more accurate representation of the housing market supply, we exclude “to-be-built” listings from the number of homes for sale that we tally. These listings, often used as builder advertisements, do not represent homes currently under construction and may not even have a definite timeline. Excluding them allows us to provide a more accurate view of the actual supply of homes for sale.
What’s the significance of the “Inventory Rate”?
The inventory rate is ratio of the number of homes for sale relative to the number of pending sales during a specific period of time. It provides a snapshot of the supply and demand balance. A low inventory rate indicates a Seller’s market, where there is more demand for homes than there is supply. A high inventory rate indicates a Buyer’s market, where there is more supply than demand. The inventory rate is perhaps the best indicator of market pressure on home prices since it’s looking at supply and demand together.
What’s the significance of “interest rates”?
Interest rates play a significant role in the housing market. When interest rates are low, it becomes more affordable for people to borrow money to buy a home. This can lead to an increase in demand for homes, which can drive up prices.
On the other hand, when interest rates are high, it can become more expensive for people to borrow money to buy a home. This can decrease demand for homes, which can lead to a decrease in prices.
What’s the significance of the “Median Listing Price”?
The median listing price is another indicator of the supply & demand balance in the market. The median listing price represents the middle point of all asking prices for homes listed for sale in a given market. By analyzing changes in the median listing price over time, insight can be gained into the pressures of home prices. It’s important to note that median prices can fluctuate greatly on a week-to-week basis and are generally only helpful when viewing a larger market segment (such as at county-level).
Disclaimers:
Although the author(s) attempt to provide reliable, useful information, they do not guarantee that the information or other content on this website is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever.
Your interest rate and/or terms may vary depending on credit history and underwriting criteria. Interest rates are in constant fluctuation, contact a mortgage professional for the most current information.
*Real Estate Data Source: IMLS (Intermountain MLS).
*Graphs: The x-axis on the graphs represents the date ranges for the current year. While the graphs illustrate trends over multiple years, it’s important to note that the date ranges may have slight variations, and as such, the data is not intended for use as a precise year-over-year comparison.
*Data, statements, opinions, etc. are not guaranteed or warrantied in any way.
*Please see terms & conditions for additional information.
