Key Points
- Track inventory trend before reacting to headlines.
- Interpret sold-to-list ratio with local context.
- Adjust strategy monthly, not annually.
Who This Playbook Is For
- Buyers and sellers who want monthly strategy decisions, not yearly assumptions.
- Clients tracking market shifts before pricing or offer moves.
- Anyone who wants to interpret local market data correctly.
Monthly Market Reading Framework
Phase 1: Inventory and demand balance
Measure whether supply is tightening or expanding in your segment. Inventory trend often predicts negotiation pressure.
Checklist
- Track active listings month-over-month.
- Separate detached, condo, and townhome trends.
- Mark neighborhoods with sharp inventory swings.
Phase 2: Price behavior and deal velocity
Watch median movement and sold timing together. Rising prices with longer days on market can signal mixed strength.
Checklist
- Review sold price trend for your segment.
- Track days on market changes.
- Identify spread between list and sold outcomes.
Phase 3: Strategy adjustment
Translate data into tactical moves: pricing changes for sellers or offer posture shifts for buyers.
Checklist
- Set monthly pricing/offer playbook updates.
- Reassess risk tolerance by market condition.
- Adjust timeline expectations with current data.
Metric 1: Inventory direction
Rising inventory can improve buyer choice. Tight inventory can increase competition and compress decision timelines.
Metric 2: Price velocity
Watch median and comparable-specific trends. Segment by property type and area for reliable interpretation.
Metric 3: Negotiation leverage
Combine days on market, offer activity, and condition behavior to estimate where leverage sits this month.
Monthly Inputs To Track
- Inventory count by target segment.
- Median sold price trend by neighborhood.
- Average/median days on market.
- Sold-to-list ratio trend.
- Your personal timeline + risk tolerance notes.
Common Market-Reading Mistakes
- Relying on national headlines for local decisions.
- Using one-month spikes as long-term trend proof.
- Ignoring segment differences (condo vs detached).
- Failing to adjust strategy when data shifts.
First 7-Day Action Plan
- Day 1: Gather current month inventory and sold data.
- Day 2: Compare month-over-month trend for your segment.
- Day 3: Update negotiation posture (buyer/seller).
- Day 4-5: Rework price/offer strategy with advisor.
- Day 6-7: Execute updated plan and monitor response.
Common Questions
How often should strategy change?
Reassess monthly. Even stable markets can shift by segment or neighborhood.
Is one market headline enough to decide?
No. Use local segment data and property-specific comparables before making a move.
Can buyers still negotiate in active markets?
Yes, if offer structure and risk profile are aligned with seller priorities.
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