This Market Update May Shock You
Today’s real estate market update may shock you.
If you saw our market update for June, you might remember that the number of sales had increased 1% while the number of listings increased 7%. It was great news because we added some inventory to our market. Inventory has been our ongoing issue for the last couple of years.
In July, sales fell 7%, the number of pendings (or homes going under contract) declined by 10%, and the number of new listings hitting the market grew by 18%! Those are better numbers than we’ve seen in a while, and it’s excellent news because we still need more inventory for buyers.
Only the future can tell us what this means for our overall housing market, but there’s no reason to panic thinking that things are slowing down quickly. We still only have one month of supply of inventory. If you recall, six months of inventory is considered a neutral market, more than that is a buyer’s market, and less than that is a seller’s market. Two to three years ago we were already grumbling about inventory, and at that time there was about a three-month supply of homes for sale.
The market slowed down a bit this summer, but I believe it’s just a tiny blip on the radar; I don’t think we’ll see a major cooldown. I foresee more homes hitting the market soon, which will be good news for buyers. This spring, we saw many buyers getting worn out by the market and deciding to sit on the sidelines. However, as more homes come onto the market, we’re likely to see some of those buyers come back to shop for homes. I expect more inventory to help our overall sales numbers.
"The market slowed down a bit this summer, but I believe it’s just a tiny blip on the radar."
Homes are still selling extremely quickly; the average home currently sells within just three days. The median home price has climbed 17% to $190,000, and the average sales price has jumped up 10%. We’re in an ultra-strong market right now. Though the market cooled a bit this summer, we anticipate that it will heat up again throughout autumn.
The numbers show it’s still a fantastic time to sell. Also, interest rates are still amazingly low, and more inventory will mean a better market for buyers.
If you have any questions about this data or real estate in general, feel free to reach out to us via phone or visit our website. We would love to help you.
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