Brooklyn Market Update - December 2023

Today we will delve into the fascinating world of real estate metrics. Whether you are a buyer or a seller, understanding these metrics is crucial in making informed decisions in the market. So, let's dive right in!

Firstly, let's talk about the "Months Supply of Inventory," which currently stands at 7.25. This metric represents the number of months it would take to sell all the available homes on the market at the current sales pace. A lower number indicates a seller's market, where demand exceeds supply, driving prices up. Conversely, a higher number reflects a buyer's market, with more supply than demand, potentially leading to lower prices. With a months supply of 7.25, we can say that the market is leaning towards a balanced state, offering fair opportunities for both buyers and sellers.

Moving on, the "12-Month Change in Months of Inventory" is a metric that analyzes the percentage change in the months supply of inventory over the past year. In this case, we observe a significant decrease of -22.95%. This suggests that the market has become more competitive for buyers, as the supply of available homes has decreased compared to the previous year. Sellers, on the other hand, may benefit from this trend as it potentially leads to higher selling prices due to increased demand.

Next, let's focus on the "Median Days Homes are On the Market," which currently stands at 70. This metric represents the average number of days it takes for a home to sell once it is listed on the market. A lower number implies a fast-paced market with strong buyer demand, where homes are selling quickly. Conversely, a higher number suggests a slower market where homes may take longer to sell. With a median of 70 days, we can conclude that the market is moderately active, providing a reasonable timeframe for both buyers and sellers to find suitable opportunities.

Now let's discuss the "List to Sold Price Percentage," which currently stands at an impressive 98.3%. This metric represents the percentage of the listing price that homes are actually sold for. A higher percentage indicates that sellers are receiving close to their asking price, which is a positive sign for sellers. It also implies that buyers may need to be prepared to negotiate and potentially offer prices closer to the listing price. With a list to sold price percentage of 98.3%, we can infer that sellers in this market have been successful in achieving their desired prices, reflecting the overall strength of the market.

Lastly, we come to the "Median Sold Price," which currently sits at a notable $760,000. This metric represents the middle value of all the sold prices in the market. It is a key indicator of market value and can provide insights into the overall affordability and desirability of a particular area. With a median sold price of $760,000, we can deduce that the market caters to buyers and sellers in the mid-to-high price range, showcasing the value and attractiveness of properties in this area.

In conclusion, these real estate metrics provide a comprehensive view of the current market landscape. The months supply of inventory, the change in inventory over the past year, the median days homes are on the market, the list to sold price percentage, and the median sold price all play a significant role in understanding the dynamics between buyers and sellers. By taking these metrics into account, buyers and sellers can make well-informed decisions and navigate the real estate market with confidence.