What’s Going on with Inventory?
The roller coaster continues. We saw a drop of over 5% last week from 3,806 to 3,601. A reduction is pretty typical for the Memorial Day weekend. However, it follows an 8.4% increase from the previous week. What’s that mean for the NOVA market? That puts us at a modest 1.4 months’ supply of homes. In the greater Piedmont area, we are at a more balanced 2.1 months’ supply.
Mortgage applications fell to a 5 week low, a precursor to a slowing market. We are seeing seller subsidies, lots more contingencies, but also some not close into the district markets that are getting multiple offers. You really need to know the market these days, especially as a home seller. If you are not in one of those rocking areas, overpricing is a death knell. Nationally over 30% of homes have had to take a price reduction, but we are better off locally. We were at 11% this week, down from 14%. The average price reduction was just north of 4%.
Everywhere I look in the media, or in discussions with the broader public, I hear a lot of folks bemoaning “high interest rates”. While rates have indeed risen, they are actually still lower than they have been at this time of the year for each of the preceding 3 years! So don’t let rates keep you on the sidelines. They are not going anywhere significantly up or down for the next couple of quarters.
As always I’m here to reach out to if you are considering your next real estate move!
It’s a good life.
Chris
