Our market is NOT the national market!!

If you are listening to cable news, or even reading the Wall Street Journal, you are probably getting the impression that we are at the beginning of a real estate market downturn.  Sales in June nationally were way, way down.  Over a third of listings have taken price reductions.  All of this is accurate on a nationwide level.  However, what much of the rest of the country is experiencing is definitely not what we are experiencing!  What makes us different?  Several things.  For starters, 3 of the 5 highest per capita household income counties in the entire country.  Second, sustainable appreciation.  2022 and 2023 were about 5%-6%, though this year we are trending closer to 8%.  Not the overheated annual appreciations experienced in other parts of the country.  And, while inventory continues to increase, it is nowhere near where it would need to be for a balanced market, let alone one primed for a retreat.  So ignore the national media and read my blogs!

Let’s look at some numbers.  Inventory stayed steady at 2,326 homes for sale, down 4 from last week.  Contracts jumped from 439 the previous week to 651 this past week!  So much for the slowdown.  This translates to a 1.1 months supply of homes for sale.  On the rental front we are at .8 months supply.  This represents a mere 2% reduction in sales from last year compared to 5% nationally.  How about on the price reduction front?  In our market, only 12% vs 38% nationally.  How about distressed sales regionally?  Zippo.  5 foreclosures and 3 short sales.

Folks, we are in a very healthy and sustainable market.  One other comment regarding interest rates.  The opinion du jour is that there will be a quarter cut in September.  Not a big deal in and of itself, and even less so because the market has already baked the anticipated cut into pricing.  Call me if you are thinking of buying or selling and want to know what this all means for your specific situation.

It’s a good life.

Chris