The REAL Market Update
As we leave Thanksgiving in the rear view mirror and look forward to the Christmas holiday season this is a perfect opportunity to discuss how this year’s market has differed dramatically from the seasonal swings we have historically seen.
This week last year started the rapid descent of inventory that left us in such difficult straits this past year. This year we are seeing a seasonal reduction in inventory but thank God it’s been much more shallow than last year, down a mere 9%. Remember at some points this year we were down 32%-33%. There are currently 2,677 homes on the market. For some reference looking forward during the 3rd week of January last year we stood at fewer than 1,900 homes on the market. Ouch.
There might be some silver linings that portend some inventory relief. I read a survey that showed the pandemic has caused almost 50% of American homeowners to consider moving. 27% because they find their home is now too small. 27% because it lacks the features they now find they need. 12% over location as telecommuting lessens the need for proximity to work.
Despite the inventory levels sales continue to be incredibly robust. Week over week sales are up 28% from last year, so no the market is not cooling off at the end of the year. We have a .9 (point 9) months supply of homes now compared with 1.3 months last year. Nationally we are at 2.5 months, which is actually very strong but you can see how much different our region is. We once again have only a .5 months supply of rentals so if you need a place to live you have your work cut out for you. I’m here to help.
Sales prices are up 8.25% YTD and 11% year over year! This compares to 7.3% nationally so we are again outpacing the country as a whole. Surprisingly cash buyers are making up 19% of the market. Makes it tough sometimes to compete with on the buying side but talk to me to discuss ways to overcome that.
At the end of the year everyone wants to be Nostrodamus and some are predicting a housing bubble but if you’ve read my previous blogs I don’t buy it, and see no new information out there to change my mind. There are only 6 foreclosures and 11 short sales in the entire region!
One last bit of good news: Fannie and Freddie are raising the maximum conforming loan limits in this region from $765,600 to $822,375. Better rates for folks in that range!
It’s a good life.