As in most industries, there is a lingo or jargon that professionals in that world use. The real estate industry is no different. Those that work in the industry know and understand the terms and definitions because they use them every day. Those that don’t work in the industry may or may not fully understand what is being said. Whether buying, selling or simply a homeowner – we thought these definitions would be useful.
New Listings – New supply of homes entering the market
Pending Sales – Homes with signed purchase agreement, but haven’t closed yet
Closed Sales – Home that have sold and are no longer active
Days on Market – Average length of time from when home was listed to pended, applies to sold properties only
Median Sales Price – Midpoint at which half the homes sold for more and half the homes sold for less
Average Sales Price – Total dollar volume of units transacted divided by number of unit transacted
Percent of Original List Price Received at Sale – Ratio of sold price to list price
Housing Affordability Index (HAI) – Household income as a percent of income necessary to qualify for the median priced home under current interest rates
Inventory/Active Listing – The total number of properties for sale and in active status at month’s end
Months Supply of Inventory – Measure how long it would take the current inventory to sell off given the past 12 month of purchase activity (a.k.a., absorption rate)
Now if you would like stats for your area about any of the above terms and definitions, contact your Roger Fazendin REALTORS® agent for a complete overview about what’s happening in the residential real estate world – you may be surprised at what a good time it is to be a buyer and/or a seller.