Mike Simonsen is the founder and president of real estate analytics firm Altos Research, which has provided national and local real estate data to financial institutions, real estate professionals, and investors across the country for more than 15 years. An expert trendspotter, Mike uses Altos data to identify market shifts months before they hit the headlines.
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When a homeowner is asking whether now is a good time to sell, Altos data makes it easy to respond with statistics to back it up.
Leverage the Market Action Index
In addition to looking at seasonal trends, look at the Market Action Index (MAI). If it’s greater than 30 and moving up, that means there’s solid buyer demand. Inventory is probably decreasing, and DOM is probably low or falling too. If the MAI is below 30 and falling, it’s moving into buyer’s market territory - still a good time to sell, as long as the house is priced appropriately so that you don’t get stuck on the market too long.
Consider one of the following responses, based on what you find in your MAI:
“It’s a great time to sell. There’s a ton of demand and very low inventory. Homes are moving super fast.”
“The MAI is falling, and the market is starting to slow down. We should move quickly to get your home on the market soon, and make sure we price the house appropriately to move.”