The factors of supply and demand control prices
Real Options Realty is a recognized source for the interpretation of residential market statistics in Santa Cruz County. We are often quoted by the media.
Knowing market statistics can help you make informed decisions, because the factors of supply and demand control prices. Now you have access to this information anytime.
Residential Market Statistical Graphs and Explanations
Number of Listings
The Number of Listings shows the supply, or how many properties are for sale. Is the inventory of listings increasing or decreasing, and is it seasonal?
Number of Sales
The Number of Sales shows the demand, or how many properties closed escrow. Is the number of sales increasing or decreasing?
Unsold Inventory Index
The Unsold Inventory Index is the most important predictor of future price movement. It is the inventory of properties expressed in time, or the current relationship between supply and demand. For example, if there is a 6 – 8 month supply of houses on the market, prices are stable. If there is only a 4 month supply, prices usually increase. If there is a 10 month supply, prices usually decrease.
The Median Price shows the price at which there were an equal number of sales higher than or lower than that price. Have prices been increasing, decreasing, and how fast?
The Average Price shows the sum of all sales prices divided by the number of sales. Have prices been increasing, decreasing, and how fast?