When priced correctly, to market value, homes sell. Priced too high, sales languish. In April 2018 sellers got the message. There was a slight reduction in sold prices. The result, homes sold, and inventory of homes for sale is now very low. Accordingly, we are in a Seller’s market relative to the low supply of homes, but it is a Neutral market relative to price, i.e., sold prices have leveled off.
For over six months real estate sales have experienced a balanced, neutral market between sellers and buyers. Modest appreciation in closed sales and prices. In April prices stabilized, in fact, sold prices declined. This was due, in no small measure, to competition from the many new home communities and builder incentives. The result: Buyers resisted continued price appreciation for resales, when new builds with popular features and upgrades could be purchased at similar prices. This was particularly so for homes not renovated to today’s design standards. Buyers factored the cost, time and effort to renovate an existing home in a more desirable location, versus a new home and the life-style amenities of a new community. It appears in April 2018, Sellers who successfully sold their home, especially unrenovated homes, began to take notice, accepting modestly less than what they would have heretofore received. Accepting the market as it is, prices have stabilized; closed sales have increased. The result: Inventory is low, at 2.9 months; if properly priced (96% sold to list price ratio), homes are going under contract within 2 months.