market metrics
A clearer indicator of the relative strength of the regional housing market is the relationship between the active inventory of the properties on the market and the number of units sold. The first half of 2014 has also brought concerns in regard to increasing DOM figures and a growing inventory. The DOM figure in the NVAR region declined sharply from 71 days in June 2009 to just 24 in June 2013. While this figure increased 24 percent to 29 days in June 2014, the current average DOM figure is still well below historical averages. The same pattern holds true for the active inventory. In June 2010, the active inventory in the NVAR region was more than 9,900: this dipped to just 5,700 in June 2013 before increasing to about 7,000 in June 2014. Although this represents a one-year increase of 21 percent (Figure 3), the active inventory in June 2014 was about equal to the 2011 level and about 30 percent below the 2010 level. Figure 3: Days on Market and Active Inventory, 2009 to 2014
Source: Metropolitan Regional Information Systems, Inc.; GMU Center for Regional Analysis
A clearer indicator of the relative strength of the regional housing market is the relationship between the active inventory of properties on the market and the number of units sold. In June 2009, the ratio of active listings in the NVAR region (including units sold that month) to closed sales was 4.5. This figure increased until June 2010 before beginning a rapid descent. market metrics continued on page 22 http://go.nvar.com/1405 RE+VIEW
SEP + OCT 2014
21