If you are a homeowner in the price range of $450,000 - $700,000 you understand that the inventory in this market is taking quite some time to move. In a recent article by Stewart Mednick, he discusses a formula that can be adapted at different price points to find out how long it will take for a home to sell.
I applied Mednick’s formula to the real estate market in Table Rock Lake and Branson Missouri and adapted the price range to fit local conditions. In the Tri-Lakes area, there 11 homes in this price range that have sold in 2009. I divide that number by 6 (representing 6 months) = 1.8 homes per month sold. In Branson West and Reeds Spring there are 34 homes on the market. I divide 34 by 1.8 (number of homes that sell per month) = 18.9 months necessary to sell a house in this price range. In Kimberling City, Lampe and Shell Knob there are 25 homes on the market. I divide 25 by 1.8 = 13.9 months.
According to Mednick, this is important information that needs to be included in any marketing plan or market analysis. This information is especially beneficial when considered with pricing the home in a price point that is most competitive.