What is going on with the real estate market? I was always taught by the real estate economists to look at several different fundamentals to determine the state and direction of the market. If the fundamentals are all going up, the market is rising, if they are all decreasing, the market is falling. If its a mix, the market is changing and stay tuned….Let’s look at median sales price, inventory supply, days on market to sell and list to sale price - those are the big four fundamentals.

Median sales price is up 26.6% in Hugo for the past year. That is unheard of in my 20 year tenure in real estate. The most I can remember is a double digit price gain being off the charts.

Monthly inventory is at 1.3 months. That means that all the inventory listed for sale will sell in about 1 month at the current sales rate. 4-6 months is considered a balanced market. Still a major sellers market and what is driving the price gains.

It takes an average of 10 days on the market for a property to sell. That is unbelievably fast. I don’t know what the historical average is but I would guess 40-60 days.

100.6% - that is the average percentage of list price that a home sells for. Over list price is the norm. This drives pricing up faster and faster.

When you look at theses four fundamentals, there is no sign that the market is slowing or changing any time soon. The main driver is the lack of inventory. The market needs more sellers to slow the demand that is driving up prices. I would guess with 26% annual price gains that it might entice some sellers to enter the market…but with a lack of options of where to move to, it is still a challenge…

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Price gains in Hugo 26.6% this year!!!