May you live in interesting times
Sometimes the market is moving uniformly and powerfully in one direction or another throughout the range of prices and locations. This is not one of those times. We continue to be in a strong yet stratified market.
Let’s start with the numbers and they usually tell the underlying story. Sales numbers are almost identical this month compared with last month even though inventory is down 18% from last year. 6,708 homes currently for sale compared with some 7,900 a year ago. This translates based upon current absorption rates to about a 1.6 month supply of homes.
Prices are up 5% Year to Date and 3% Year over Year. Now let’s dig deeper.
The under 400K price point is booming! Generally from 600K to 800K could charitably be characterized as quiet.
In a strange twist buyers are having a hard time finding good inventory yet they are being increasing picky. I attribute that to two things. One is a continued moderating of interest rates which is removing some of the sense of urgency. The other is that as prices rise they are getting the sense that some places are priced too high or they are having to go up a lot to compete in multiple contract situations and if that’s the case they want them perfect.
This has left us with a little bit of a mid year easing of activity. Pent up demand at the beginning of the year has played out and “Competition fatigue” is setting in as well. We’re hearing “I don’t want to get into a bidding war” more often and in some cases sellers are over playing their hands.
So where does that leave us? If you are a buyer don’t pick the places apart! Focus on the things you cannot change and if the price is too high make a defensible offer and see where it goes.
Sellers? Price it right, stage it well, hire a great broker and watch it move!
I’m always ready to help you with your real estate needs.
It’s a good life.
Chris
