When buying or selling real estate it is essential that you and your Realtor have understanding of market dynamics.
Although predicting the direction of the housing market is very difficult we do have many statistical housing measures which indicate the markets current health. These measures include the number of homes currently for sale in the market, the number of sales over a certain period and the average price.
When assessing the strength of any given housing market it`s important to remember that the relationship between a current months sales and the number of active listings is more important just the sheer volume of listings or sales. The months of inventory (MOI) is a statistic which we use to measure whether a market is considered a buyers, sellers or balanced market. The lower the MOI, the hotter the housing market.