As many of you are aware, at JohnHart Real Estate we believe that a house is more than just somewhere to live or something to rent out, it is an investment; and likely the single largest investment in your portfolio!
For this reason, one of the things that we coach our agents on when they join JohnHart is how to help their clients remove emotion from the equation when thinking about their home. Whether it is a purchase or a sale they are considering, the ability to think objectively and to focus on the facts will be the difference between making a decision which will haunt them for years and one which will lead to an accumulation of wealth!
To facilitate this “good decision making”, we teach our agents to think of themselves less as Realtors and more as financial advisers; and just as a financial adviser would do, they should make their recommendations based off of numbers and market data.
While we provide our agents with information and data from which they can form their suggestions, it occurred to me that a lot of this information is not easily accessible to the general public. So, to help all of you understand the “ebb and flow” of the market, we have decided to begin providing this information right here on our blog!
At the beginning of each month we will post a blog, like this one, with one of the metrics that we think is most important in market timing: The Real Estate Market Inventory Report.
For those who don’t know, the months of inventory figure for a specific area is a key performance indicator which we in the industry watch to determine supply and demand in the market. Furthermore, watching the trends in this figure over several months can help to shine light on where the market is headed, and the amount of confidence there is in current home prices.
We will start with five local cities, give you the inventory data for the current month and some interesting data from the past 6 months, and then gradually begin to expand reaching further out in LA county and surrounding areas.
I hope you enjoy, and look forward to you thoughts in the comments below!
If you need any help understanding what this data means, please let us know and we will gladly help out!
Have a great month!