Kelley’s Market Trends: Measuring Demand

A good indicator of demand is to compare numbers of sales to new listings

By Jim Kelley

A good indicator of the overall demand for properties is to look at the number of sales that occur and compare those sold numbers to the number of new listings that are coming on the market. There have been 2,029 new residential listings that have come on the market in Flathead County in 2016 and a total of 1,015 sales. This means that 50 percent of the new listings that came on the market in 2016 have sold. By comparison, in 2015 there were 2791 new listings and 60.1 percent were sold.    

Over the last 16 years, the highest percentage was in 2000 when 1,398 new listings came on the market and there were 1,400 sales that year. The low was in 2008 when there were 3,548 new residential listings and only 985 sales, representing 27.8 percent of the new listings.

Although only 50 percent of new listings have sold in 2016, it should also be noted that over the last six years around 54 percent of the total number of sales have occurred in the second half of the year. If this pattern continues through 2016, it is likely that the percentage of new listings that sell will be in the 55 percent to 60 percent.    

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