The 5-year market trending graph illustrates the month-to-month price changes of the market surrounding the subject property, over the course of the last several years, based on closing sale prices.
When the month-to-month prices changes graph is combined with the quarterly median sale price trend, you will have a trend line that will predict the future home price, as close as 3 months ahead. The 5-year price trend graph could also be used as a data tool to determine particular markets where sellers have the power and those where buyers are in control.
ANALYZING LOCAL HOME MARKET
Understanding monthly trends in house prices is important to determine whether buyers or sellers have more negotiating power in a given market.
In a seller's market, where price cuts are sparse and listing inventory is tight, homes often sell for at, or above, their asking price.
In a buyer’s market, where homes take longer to sell and price pressure is high, buyers will more often receive discounts off the asking price.
In this analysis, a seller’s market is not necessarily one where home values rise but is a market where sellers are more likely to sell their home for close to asking price and where listings spend less time on the market.