REINCheck

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VO [00:00:06] You're listening to REINCheck with Andrea Rice, Contracts and Industry Specialist at REIN, where you get the latest member news and information delivered straight from the source, REIN MLS.

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Andrea Rice [00:00:20] Hello and welcome to REINCheck. I am your host, Andrea Rice, and today we're checking in with REIN's Data Specialist Josh Garbin to talk a little bit about statistics. Josh, thank you so much for being here today.

Josh Garbin [00:00:33] Good to be here.

Andrea Rice [00:00:35] Thanks. And I know a lot of people, myself included, really like looking at stats because the numbers can really paint the picture of what is going on in the housing market. And looking at the stats, I see average and median sales numbers. Can you tell me what the difference is between median and average, and which one should I be referring to when talking about the market?

Josh Garbin [00:01:00] Absolutely. So, when we're talking about median average, average is taking a look at the sum of the whole and then dividing by the number its parts. So, say there are about a thousand listings that are out there that have sold. We're taking a look at all one thousand listings, whether it be the list price or the sale price, and then we're dividing by the total number. The median looks at exactly the middle number of the bunch. The same one thousand. And there is a little bit of a calculation when it comes to that, especially when it's even. When there's an even number we take a look at the middle two and then grab the average of those two. Really, the median actually removes the outliers. For example, let's say a majority of the homes sell between two hundred fifty and three hundred fifty thousand dollars. But one of those thousands that we're looking at happens to sell for over a million dollars. Well, now one property could really skew the numbers. The same would be true if there's ones that sell under a hundred thousand. So, median really tells us the true story of what's going on.

Andrea Rice [00:02:01] OK, interesting, I think that clears it up for a lot of people, because I know I've heard once or twice, you know, what's the difference? Average, median, but really median, you're saying, is giving the more accurate picture of what's going on in the housing market. And as we sit here, it is April 2021, and I don't think you can go anywhere without hearing that it's a seller's market. So, can you tell me what does that mean, and what should I look for in statistical reports to indicate that it's a seller's market?

Josh Garbin [00:02:36] OK, the seller's market, well first on our stat reports, it's going to be page five, the statistical reports. And what this number, we're looking at months supply versus the absorption rate. And the months supply tell us the health of the market. A number of six is considered a balanced market. Anything above that is a buyer's market and anything below that is a seller's market. But what that boils down to is that there is less inventory. So, sellers are able to, basically, drive the price of the market as it goes along. I'm looking at the current statistics for our March 2021, and the market sits at one point two one. And that is one of the lowest that we have seen in a very long time. And what it looks at also is what's called the absorption rate, which is basically the average number of listings that have sold in the last 12 months. So, when I'm looking at this report, I see that it's one point two months with an absorption rate of 2,900 or so. So, what that means is if we sell about 2,900 overall in the market, it would take a little over a month for us to be completely gone with active listings. And that's saying that there are no new active listings going in at all. But we're having active listings going in all the time.

Andrea Rice [00:03:55] OK, interesting, and I'm going to put you a little bit on the spot here and ask you how accurate are REIN's statistics?

Josh Garbin [00:04:04] Very accurate. We carefully examine the data even before we start compiling these reports. For example, if we find the prices just don't look right, we may say, for example, there was a typo that was entered in. We contact the listing agent or even the selling agent to verify all the information is correct. We also do a lot of number verification before we even post the stats. It's a lengthy process to get all together, but we are careful and methodical to make sure that we're posting the most accurate information for you.

Andrea Rice [00:04:35] That's interesting. And I think that'll be interesting for our members to know that, you know, if you do see anything that looks a little bit off, you take that extra step and actually call the agent to make sure that that was accurate. Interesting, so I think I could sit here and listen to you talk about numbers all day long, but we are running a little bit out of time. So, before we sign off, is there anything else that you would like to add?

Josh Garbin [00:04:59] Yes. REIN actually added weekly tracking due to the pandemic to more closely monitor the market. Which you all agree, it was uncertain at the start of the pandemic, but ended up being a really strong year in terms of home sales. It remains to be seen how the market plays out to the end of this year, 2021. But you can bet we'll be watching it closely.

Andrea Rice [00:05:19] Yes, I'm sure you will, and I think everyone will have their eyes on the market to see what transpires. Thank you so much, Josh, for being here today to share that information, and thank all of you out there for listening. And I hope you enjoyed this episode of REINCheck. And if you missed any of the previous episodes, I invite you to go back to REINMLS.com/podcast and take a listen.

Andrea Rice [00:05:42] Thank you. And have a great rest and.

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VO [00:05:47] You've been listening to REINCheck with Andrea Rice. Stay in the know from those who know. Delivered straight from the source, REIN MLS.

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