The National Association of Realtors standard for a market in balance between buyers and sellers is a market where there is a 6 month supply of homes. The calculation is simple. Total sales within the preceding 6 month period divided by 6 then divided by the number of homes on the market.?
This is just a fictitious example to illustrate the point. Let’s say you want to analyze houses in Amherst, Clarence and Orchard Park between $250K and $400K. Your computer search reveals that are 60 sales during the preceding 6 months. Therefore 60 divided by 6 = 10 sales per month.
?You do another search to reveal there are 20 houses for sale between 250 and 400 in these areas. You do the math. 20 divided by 10 = a 2 month supply of homes in this category.?
With the standard being 6 months, you can see this would be a strong seller’s market.
Here?s a sampling of actual data for Western NY? ? various areas and price ranges:
Upper West Side/Elmwood Village ???????? $200-500K?????????? -? ??????????? 2.28 month supply
Amherst????????????????????????????????????????????????????????????? $150-200K?????????? -????????????? 1.6 month supply
Amherst????????????????????????????????????????????????????????????? $300-500K?????????? -????????????? 5.3 month supply
Amherst????????????????????????????????????????????????????????????? $700K-1M??????????? -????????????? 11 month supply
Clarence????????????????????????????????????????????????????????????? $250-450K?????????? -????????????? 3.35 month supply
Clarence????????????????????????????????????????????????????????????? $500-700K?????????? -????????????? 8.38 month supply
Lancaster???????????????????????????????????????????????????????????? $200-400K?????????? -????????????? 6.38 month supply
Orchard Park????????????????????????????????????????????????????? $300-500K?????????? -????????????? 4.41 month supply
Orchard Park????????????????????????????????????????????????????? $700K-1M??????????? -????????????? 4.82 month supply*
?*this data reflects sales reported up to 5/15/13 for the immediately preceding 6 month period.