Minden Gardnerville NV Homes on Market - Summary
This post is designed to show a Minden home buyer or seller how the different market segments within the Minden Gardnerville area break down. I like to use a metric called "Months of Inventory" as opposed to "days on market" because of one simple reason - it is more accurate and more informative.
Why not Days On Market?
Well let's suppose a Gardnerville home is on the market for 12 months with Gardnerville Realtor "A". It is not uncommon for a home seller to switch agents at the expiration of a listing term (I could write more on this topic - but that is the subject of a future post). Now this same Gardnerville home is for sale with a new Realtor and sells in 60 days. Well, is the "days on market" now 60 or 425 days? It would be recorded as 60 which drastically distorts the reality of the market conditions.
Months of Inventory
Months Inventory is more reliable and stable. You start with the current number of homes for sale. This would be the "Inventory". Next, you take the total number of homes that have sold (in the same market) over the last 12 months and divide that number by 12. This yields "Average Homes Sold per Month". By averaging this number, you eliminate fluctuations in seasonality, summery buying periods, etc. Lastly, Divide "Inventory" by "Avergage Homes Sold per Month" and you get "Months of Inventory". In other words, how many months would it take to fully 'deplete' the current homes for sale if no new homes came on the market. This metric is tracked monthly for all Reno-Tahoe real estate markets in The Greater Reno-Tahoe Real Estate Report which you can check out on this site.
Now, we all know real estate markets are very location sensitive. Well, they are also "price segment" sensitive. The following table and chart show how the Months of Inventory varies based on the price of the home being sold in Minden or Gardnerville areas of Nevada.
Table showing Months of Inventory by "Price Segment"
|Current Listings||Sold/Month||Months Inventory|
|$400K - $500K||120||8||15.0|
|$500K - $800K||149||9||17.0|
Current Listings = Number of homes listed in Minden, Gardnerville area today.
Sold/Month = Average number of homes sold per month (over last 12 months)
As you can see, the lower priced homes have a lower months of inventory and, while we are still in a buyer's market, this price segment will probably be less sensitive to price decreases.
Hope this helps raise awareness to pricing, negotiating, and having realistic expectations for you home buyers and sellers out there...
Broker - CalNeva Realty