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Thank you, gentlemen, for trying to explain.
I've a feeling that Doug is correct in that the days on the market
statistic is calculated only for the properties that were sold. If
this is true, then it is very misleading because in market where
inventories are rising, the statistic will understate the potential
days on the market for a property going on the market today for the
reasons that Doug mentioned. I suppose that the reverse is true for a
market where inventories are falling. I guess it's a little like
trying to measure the average age of the population by counting only
the age of those who have just died!
I fully understand the concept of median and how it compares to
average, but I do not think that the median number of days on the market
would be very easy to compute from rough figures like inventory
turnover. In fact, you couldn't really calculate a median days on the
market unless you had data for the whole population---something we
appear not to have.
I also understand that certain segments of the market do better than
others and that it's not out of the question to have a vibrant market
in one segment and a crash in the other as CalNeva has pointed out.
Even so, I think that the general trend appears to be the same no
matter what segment or geographical location you look at here in
SoFla--inventories are rising steadily.
CalNeva and Doug--Do you have a access to similar data for your
markets? If so, what are they showing?
Bill
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Re: Market downturn: How will it develop?
