ILHM National Luxury Market Report Week Ending November 11, 2011
National Summary Charts
The charts below show the 7-day and 90-day rolling averages for median list price, days on market, and inventory for the national composite–a snapshot of how, together, the luxury markets around the country are performing.
Altos Research developed the Market Action Index (MAI) for an at-a-glance measurement of market conditions. The MAI is a barometer of real estate supply and demand. A value above 30 indicates demand is relatively robust, we call that a Seller’s Market. Below 30 is a Buyer’s Market.
Also use the Market Action Index trends as a leading indicator for prices. When markets fall persistently into Buyer’s territory prices will likely follow.
The definition of this market stat is:
“Percentage of homes on the market that have decreased their asking price at least once over the past 90-day period.”
In any market, even in strong seller’s markets, there will always be some number of properties that will decrease their listing price. These may include sellers that drastically overpriced their homes just “to see what they could get” or homes that simply entered the market at a price level above what the market will bear.
Even in strong seller’s markets, the Percent Price Decreased will be 10-12%, so some repricing of individual properties is common in any market. In weaker markets, this value begins rise into the teens, 20%, 30%, and higher. Percent Price Decreased is an incredibly insightful gauge of demand levels in the residential housing market. This statistic illustrates how many listed properties may be behind the “price curve” – listed at a price above what the market is willing to pay for similar properties.
However, “Percent Price Decreased” alone does not indicate the overall health of a particular market. This statistic should be combined with other market stats to determine the overall direction of a market.
Local Detail Charts
Members can access the report archives and “drill-down” with detailed graphs for more than 30 metro areas in the Members Only section.
About Chris Weymouth & The Weymouth Group, LLC and the TheMDRealEstateBlog.com: Your number one source for Maryland Real Estate Blogs, News, Videos, and more! Chris Weymouth, Luxury Home Realtor.
Chris Weymouth, Director, Certified Luxury Home Marketing Specialist, CLHMS and Debbie Weymouth, Manager, have marketed and sold over 4000 homes in Maryland since 1983. Expertly trained and award winning agents, they are leaders for The Weymouth Group at Keller Williams that has been recognized by their peers as one of the best in the business. Chris Weymouth is ranked in the top 1% at Keller Williams Select Realtors, top 1% in Howard County and Maryland among Realtors. Serving Central Maryland and all our friends and family for almost 60 years. Need a Luxury Home Marketing and Buyer Specialist in Howard County (Ellicott City, Woodstock, Clarksville, Marriottsville, Fulton, Laurel, West Friendship, Glenelg, Columbia, Elkridge, Dayton, Mt. Airy, Woodbine and more), Carroll County (Elkridge & Sykesville), Baltimore County (Catonsville, Woodstock, Owings Mills, Pikesville and Reisterstown), Anne Arundel County (Pasadena, Severna Park, Hanover, Severn, Glen Burnie, Annapolis and Odenton), Prince Georges County (Bowie & Laurel), Montgomery County (Silver Spring, Olney, Bethesda and Sandy Spring) or Harford County? We Know This Market! Then call Chris at 443-280-1922 or email at email@example.com