What does information indicate about the market

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Reference no: EM132908043

The current MLS system shows the following data for 5- to 10-year-old homes priced from $500,000 to $550,000:

  • 13 current listings
  • 4 pending sales (offer accepted but not closed), and
  • 12 sales within the last 12 months.

Over the last five years, the same market usually has had about a six-month supply of homes for sale. New home builders and brokers are advertising for the first time in many years. The average number of days on the market is 10% longer than in previous years.

Problem 1: What does this information indicate about this market?

(1) It is oversupplied and prices will be stable at best.

(2) It is fine and prices will increase slightly.

(3) It is great and prices will increase rapidly.

(4) It is weak and prices will be unaffected.

Reference no: EM132908043

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