The Seller’s Market Continues … But Pricing is Key.

Inventory levels remain low.  In August there was only a 3.2 month supply of homes for sale, based on closed sales.  What this means:  Statistically, if there are no new listings over the next few months, then in 3.2 months there would be no homes for sale.  Low supply creates a Seller’s Market.  However, the fact that supply is low, does not necessarily mean that prices will continue to increase.  The fact is that in August the Average For Sale Price and Median Sold Price depreciated. The Average For Sale Price was $339,000 in August, down 2.3% from last month, and down 2.6% compared to last year.  The Median Sold Price was $215,000 in August, down 6.5% from last month, and down 4.4% compared to last year. In other words, even in the face of continued levels of low inventory of homes for sale, 3.2 months, the trend is that Buyers are showing signs of resisting continued price appreciation. This is further supported in reviewing the Average Days On The Market Of Homes For  Sale:  In August the average days on the market rose  2.9% from July, to 71 days.  Although 71 days to go under contract, roughly 2 ½ months, is low, a sign of a strong real estate market, it is a whopping 31.5% higher than the 54 days it took to sell a home last year.  Considering that homes stayed on the market 2.9% longer than last month, notwithstanding as noted above of a 2.3% reduction in the average list price to $339,000, coupled with a 95% sold to list price ratio, is clear and convincing proof that listing a home at the right price is key.

Please see the 3 graphs below: 1.) Months of Inventory Based on Closed Sales; 2.) Median, Sold & For Sale Price; 3.) Average Days on Market – Sold List Price Ratio.