How Do I Find Out if My Home Has Appreciated?
A Realtor who is a MIBOR member can provide that information to you. One method I have used is to calculate the average sales price for a neighborhood for each year over a 3 year period. Then when I have those numbers I compare them to current market activity. Is that average price point increasing or decreasing and by what %? An absorption rate is also a helpful tool. This calculation determines how many months' supply of homes is present.
First see how many homes have sold in the last 6 months. I include both "pending" and "sold" properties. Then divide that total by 6 to arrive at the # of homes selling each month. Finally, take the # of active homes and divide by the # selling per month. This final number is the # of months of inventory. 5-6 months is in balance, 7+ is a buyer's market and 1-4 is a seller's market. Certain price ranges are starting to see the inventory decrease.
Here is an example to try to make the math simpler. 20 homes sold + 4 pendings = 24. 24/6= 4 homes are selling per month The current supply of homes is 36. 36/4= 9 months of inventory (Buyer's Market)
If this is making your head spin, give me a call or email me and I will be happy to explain and to check on sales in your area!