Check Market Stats Checklist

Before we consider buying any property, I recommend that you know the type of market that you’re about to purchase in.

For me that involves checking the following market stats and discussing them with me (if you’re my client in Northern Colorado) or your local real estate if you’re in another market.

Check Market Stats Checklist

Before we consider buying any property, I recommend that you know the type of market that you’re about to purchase in.

For me that involves checking the following market stats and discussing them with me (if you’re my client in Northern Colorado) or your local real estate if you’re in another market.

Months of Inventory

Months of Inventory

Months of inventory is one of my favorite indicators and looks at both supply of homes available for sale and demand for homes in terms of number of homes sold to give you a combined measure called months of inventory. It basically tells you the number of months it would take to sell through the current inventory level of homes available for sale.

My clients in Northern Colorado can access months of inventory data in a number of formats on my website. I have linked to the Fort Collins version, but you can look at similar stats for other Northern Colorado cities by adjusting the URL or changing the city on the page itself.

Historical Months of Inventory Table (for Fort Collins)

Here is an example image of the historical months of inventory table for Fort Collins from October, 2016. Clients local in Northern Colorado can see the most up-to-date stats by clicking on the image below.

months-of-inventory-table

Historical Months of Inventory Chart (for Fort Collins)

Here we have an example image of the historical months of inventory chart for Fort Collins. It has data from our local MLS, IRES, from about 1998 through October, 2016. Again, clients local in Northern Colorado can see the most up-to-date stats by clicking on the image below.

months-of-inventory-chart

Year Over Year Months of Inventory Chart (for Fort Collins)

Sometimes it is easier to look at what is happening seasonally to months of inventory since we often have more homes for sale in the summer than in the winter. The following is an example image of the historical months of inventory chart for Fort Collins but presented in a very different way. Similar to the last example, it has data from our local MLS, IRES, from about 1998 through October, 2016 but we’re showing it one year at a time.

Again, clients local in Northern Colorado can see the most up-to-date stats by clicking on the image below.

months-of-inventory-year-over-year

What are we looking for by looking at months of inventory?

We’re trying to determine if we’re in a buyer’s market, seller’s market or balanced market. By looking at historical data we can see what is normal and see if we’re seeing historically low months of inventory. That would be a sign of a strong seller’s market.

Or, maybe we’re seeing historically high months of inventory. That is usually a sign of a strong buyer’s market.

Or, maybe we’re seeing a balanced market where months of inventory is a middle range.

The state of the months of inventory might help us understand if we’re in a market where we’ll need to be aggressive making above asking price offers (crazy, I know… right?) or if we have a chance of getting offers accepted with below asking price offers or maybe it will largely property dependent (which is often the case regardless of months of inventory).

Also, we’re looking to see if we’re in a changing market. Have we been in a historically low months of inventory period, but now we’re seeing the inventory levels rise? That is often a sign of a softening/changing market. Be aware of what market you’re in and whether the market is possible transitioning.

Consulting

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If you’re interested in getting one-on-one consulting time for using the Nomad Calculator 3™, you can sign up for consulting based on your Membership Level here. Rates vary based on Membership Level.

Some Membership Levels include monthly one-on-one consulting with James as part of their membership benefits.

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