” I hear the market is up”. This is a refrain I hear almost every day from other agents,managers and media.
There are many ways to measure a market.The stock market for example can be looked at as a function of the S&P, various business sectors or as individual company stocks. The same is true in real estate markets.
Dollar volume, for example describes exactly what it sounds like. The cumulative dollar amount of real estate sold in a month,year, etc.
Why is it good to know?
Well for the normal buyer or seller it is a VERY general measure of the size of a market and whether it is growing. That said, that number can be skewed by just a few very high end listings that have sold. This is particularly true in smaller towns where there are only a couple of hundred homes sold in a year and contain very high end listings.
If you’re looking for more indicative numbers,dig deeper ,into number of homes sold. Its a better barometer of an overall market.
In subsequent posts I’ll describe other ways to read the market statistics. Stay tuned or ,for more information and insights contact me directly at 2035540951.