August Market Update
Not a lot of changes in the dog days of summer.
School started back up after summer vacation and parents are trying desperately to get back into some sort of routine. This time of year always seems to settle down a bit and this year was no different. As you can see below, all the charts are relatively flat for the month of August.
Our Median Sales Price stayed right about where we have been since June, which to be honest, is kind of a relief. I didn’t want to see that move much. An increase there, as we’ve talked about, is just not sustainable in this are right now, and a drop in that price would just be depressing. I’m glad it stuck where it is.
Some stats I’m not super happy about is the Months Supply of Inventory, Active Inventory, and New listings. All three of these numbers need to grow so that we can reach a balanced market. As we talked about for the last couple months, most homeowners have a sub 5% interest rate. It’s going to take a heck of a lot for these owners to sell. Inventory is going to suffer for at least the next year. All three of these stats might not look bad in comparison to where we were in July, but looking at how they compare to last year is not encouraging.
It’s pretty normal to see less closed sales in the month of August. A lot of buyers are taking their last summer vacations in July and August, so we tend to see a drop in activity around this time.
In my opinion, the most surprising stat on here is the Median Days To Contract. It is only taking 18 days to get a property into contract after listing it. I can tell you right now, a lot of us Realtors feel like it’s taking much longer than this. Last year at this time it was taking 32 days and in January (snow was a factor) it was taking 57 days. It’s more important than ever to price your property correctly. We are seeing homes that are priced correctly fly off the shelves. We are also seeing property priced just $10k high sit on the market for what seems like months.
Agent Insight:
“Price reductions, back on markets, and expired listings are all on the rise! What this means for you as a buyer or seller. Buyers these are signs that there is still opportunity out there for deals. They are not a dime a dozen, but with restricted inventory a small percentage of those seller’s need to sell for whatever reason. Sellers as stated multiple times in the newsletter this means having a solid broker price opinion is crucial to getting you home sold fast!”
Moving forward:
Buyers:
If you’re looking to buy in the next few months you should be sitting down with mortgage lenders NOW! Do not wait until after you find the home you like. It’s more important than ever to know what your monthly payment is going to look like at your desired purchase price. Rates are changing daily and you should be in close contact with your choses lender.
Sellers:
Again, PRICING YOUR HOME is the most important part of selling your home for top dollar. I’ve seen homes priced just a little over their value and sit on the market for over a month to end up going into contract well under the market value because they were greedy at the beginning. Don’t get greedy and listen to your realtor.
