Tracking market demand with NETAR’s reports
May 24 Market Pulse
There was a time when “what kind of foreclosures are out there” was the most common question a Realtor® heard. And then it was, “how’s the market doing?” Nowadays, it’s “how long can this go on?”
The simple answer is “as long as there’s demand.”
There are two simple ways to track demand offered every month in the NETAR market reports that agents can share with their clients. The first is pending sales. The next is median days on the market.
Pending sales are the “leading indicator” because sales go under contract 30 to 60 days before closing. They typically lead closings by about two months. Currently, they are on the upswing. The long-term trend is at its highest point since 2016. The short-term trend was at a six-month high in April.
Days on the market (DOM) can also be a forward-looking indicator. When homes are selling faster demand is increasing. When they begin to linger on the market, demand is decreasing. Currently, DOM is at an all-time local low.
NETAR publishes four market reports for members and the public each month. The Home Sales Report comes out the first week of the month. It’s followed by the Commercial Real Estate Report, then the Pending Sales Report, and finally the mid-month market update. All can be found on the NETAR website at www.netar.us