There has been a lot of talk about the shrinking supply of homes in the market. The shift in this critical market condition is nicely shown in the months of supply of Brookline’s single family houses chart. In May 2o11 there was over 10 months of supply – meaning, it would take 10 months to sell all the homes if no new ones came on market. Last May, this number was under 8 months.
Although average house prices in Brookline were down over 9%, the shrinking inventory is a sign of a healthier market. Months of supply tells us how many homes are on market and the level of demand. Lower months of supply is great news if you are planning to sell your home soon. More interested parties, less competition, maybe (MAYBE) higher asking price.
But this information means something else if your house is already on market. If you are currently trying to sell your house in Brookline, the good news is you have less competition and more potential buyers. The bad news is that while all the other homes are selling, yours is still on market. If you home has been on market much more than four months (average market time), it may be time to discuss alternative marketing options or a price adjustment with your listing agent.
Brookline single family homes have an average price of $1.3 million. Lower price ranges have sharper drops and much lower inventories. Brookline condos are down to 3.2 months of supply last month. More on that next week.