I look at supply first when the market starts to feel crowded.
If you are trying to judge pressure in Red Mountain Ranch, AZ, supply is where I begin. Last month, there were 4.33 months of inventory, and that tells me the market is giving participants enough room to think, but not enough room to drift.
Last month, there were 4.33 months of inventory, and homes sold at 98.7% of list price. I see that as a market where supply exists, but pricing still has consequences, which keeps Red Mountain Ranch, AZ firmly in decision mode.
For me, this is where strategy matters. The more supply you have, the more important it becomes to stay specific about price, timing, and presentation instead of assuming the market will absorb any approach.
Watch supply before you act. Stay specific about the plan. Do not treat the market like a blank slate.
