With July data available and real estate market news constantly making headlines, it’s a good time to take a deeper dive into our local market. Overall we are seeing less buyer demand than earlier this year. But to put things in perspective, demand is still stronger than pre-COVID with showings per listing still very strong – just not the usually high levels we saw during Winter and early-Spring. As a result, the market is a little more balanced with homes having fewer showing but still selling quickly in most cases. Prices are holding steady and while inventory is increasing – it remains lower than pre-COVID levels.
The lower levels of buyer demand appear to be driven by a multitude of factors including higher interest rates, affordability, buyer fatigue, inflation, etc. For buyers looking to purchase, homes are coming on the market and the competition is a little less fierce.
For sellers, prices are steady and not running up as they were earlier this year. Interest rates can be an impediment for sellers as well as some will need to finance their next purchase. The main point for sellers is that the trend of ever-increasing pricing has paused.
Even with a slow down in demand, homes with preferred locations, that have been well maintained, and have desirable updates are still selling with multiple offers and often well over asking price.
The charts below help illustrate these trends from dropping buyer demand, supply that hasn’t fully recovered, to pricing at a plateau:
The number of homes for sale has increased from the the lows of early-Spring when buyers were out in force – but are still well below what is typical for this time of year.
The number of new listings has shown the normal seasonal rise and fall but hasn’t fully recovered to pre-COVID levels.
This is a chart that illustrates how much buyer demand is out there in the market. How many showings a home gets generally relates to how many offers are made and how high those offers are. This is perhaps the biggest change in our market this year with the number of showings per listing dropping significantly from the-all time peak of early Spring this year to more normal levels.
Days on Market remains very low as there are still not as many homes available for sale as pre-COVID. Even with reduced showings per listing from early this year, most homes are still selling quickly.
After a dramatic run up on pricing earlier this year, pricing has somewhat plateaued as buyer demand dropped. Prices are still at all-time highs and there is enough buyer demand and limited inventory to keep supporting pricing so far.