A Shift in the Real Estate Market?
As an experienced agent I pay close attention to our MLS statistics, the ones I pay special attention to are; (All these statistics are comparing October 2017 to October 2016)
- Closed sales up 1.8%
- The number of new listings up 5.5%
- Median sales price up 7.7%
- Inventory of homes for sale up 14%
- Months of supply of homes for sale up 13%
- Days on Market Up 16%
So what do these number mean? Well they a show a good market but not as hot as the past two years, while closed sales are up they have not keep pace with the rise of the inventory of homes for sale that means homes are taking longer to sell, buyers have a much better selection of homes to look at so homes need to be more competitively priced than they’ve had to be past few years. Another indicator of a market shift is we saw price reductions during the peak summer months which were almost unheard of during the previous two years and while the median sales price is up 7.7% it is down from the past two years increases of 10% to 12% per year.
So what does this all mean?
- We’re not in a down market it’s just not as crazy and the past two years.
- Many real estate analysts are predicting that sale prices will increase 6.9% for 2018 so it’s still an better than average market. The historical average for annual price increases are between 3% to 5%.
- Now is a good time to buy as many homes that didn’t sell during the summer are available the sellers are motivated and they have had one or more price reductions so they can be a good value.
- I’m seeing more serious buyers as they recognize the market change and want to move on it.
- The Fall is a good time list your home while there are fewer buyers there are far fewer competing homes and buyers looking at this time of year are serious.
- And of course, any major financial event like 2008 or a major company relocation like Toyota or if Amazon moves here could completely change the market outlook.
For more information on the real estate market in your neighborhood, give me a call!