Supply and demand … When there are plenty of widgets the price of widgets goes down. When there aren’t many widgets available-the price goes up. Simple economics.
Question: What’s the market like in Chesterfield for 4 bedroom homes?
Answer: There’s a lot of widgets.
An important indicator of any real estate market is the “Months of Inventory” on hand. A typical healthy balanced market will have between a 5-6 month window of real estate inventory. What this means is that if no other home ever came on the market, all the current homes on the market would sell within 5-6 months in a balanced market.
Comparing Chesterfield Months of Inventory
February 2013 to February 2014
As you can see by the above chart, (source:MARIS) in February of 2013 there was a 5 month supply of 4 bedroom homes. In February 2014 there is a 13 month supply. This is an unbalanced market.
A 5-6 months supply of homes is considered a balanced market between sellers and buyers.
Over 6+months favors the buyers.
Just to repeat: At the end of February 2014 Chesterfield had a 13 month supply of 4 bedroom homes.
Guess Who That Favors?
If you are a buyer, this could be a great opportunity for you to get into an area with a highly rated school district. We would like to help you discover existing opportunities. Our home buyers are equipped with the tools and data (like this) it takes to navigate the market. Why not take a sample? You can access market condition reports for Chesterfield here.
Remember that “Months of Inventory” can be used as a gauge to track when it can either be the best time to buy or sell. Is your Realtor providing you with this type of information? If not, take a closer look at Finding Homes for You. We are dedicated to bringing you usable information and analysis to help you buy the best home at the best price.
If you would like this kind of information for additional areas please email email@example.com or call Finding Homes for You at 636-532-4200.
- Number of Months Supply of St Louis Homes and the Impact on Price
- Is Zillow Really That Accurate for the St. Louis Real Estate Market?