With summer over, temperatures have been dropping while interest rates have been rising. Autumn color has started to break and now is an opportune time to reflect on how our real estate market has changed over the past few months relative to the last 5 years. There’s been plenty of real estate news in the media so let’s look in detail at our own local market which I have divided by school district even though the trends are similar across districts.
Prices Have Started to Fall Compared to the Frenzied Highs of Earlier This Year and Remain Stronger than Pre-COVID Levels
The chart above illustrates how price per square foot has dropped significantly since the highs of earlier this year. The data is monthly so you can see the changes month to month vs. data that has been smoothed over six or twelve months – which tends to obscure trends that are changing rapidly. All is not lost however given the values are still significantly higher than pre-Covid. And if you were to smooth the data over 12 months, the chart would show a continued steady increase over the longer term.
The Number of Homes For Sale has Started to Recover
You may have noticed more homes for sale and some homes taking longer to sell. Both of these conditions are true. The above chart illustrates the number of homes for sale by month. The lows of earlier this year gave us the market frenzy then. We are now seeing the number available homes for sale rise gradually but still well below pre-COVID levels.
Showings Per Listing Have Dropped Significantly From Earlier This Year Returning to Pre-COVID Levels
Perhaps the most dramatic statistic that illustrates the changes in our market is the number of showings per listing. Earlier this year, we saw buyer demand spike sharply and prices rose accordingly. Then showing activity dropped significantly over the summer and we are now back to pre-COVID levels of showing activity. This has resulted in cooling prices and longer days on market for some homes. But a well presented, updated, and maintained home that is priced appropriately should still sell quickly and possibly with multiple offers.