Is the summer housing market as hot as the weather? It is if you measure by price! June set a new all-time high for median price in our area at $471,000, up 3.5% compared to June of last year. But sales volume, closed sales, and new pending sales were all down from June of last year. By now you can probably guess what is driving these market behaviors: inventory!
New listings were down 6% from June last year and down 11% from May. The lack of new listings coupled with continued quick absorption meant active inventory was 6% below June of 2017, which was already low. We are still above the all-time lowest active inventory seen in our area in 2013, but significantly below the 5 and 10 year averages. Without properties to buy, the desirable properties that DO come on the market are either priced at a premium or may get bid up, which is why we see the rise in median price. Sales volume is down simply because there are fewer properties to buy or would-be buyers are getting priced out.
Properties that are well priced are still moving quickly! Average Days on Market (DOM) for June was 10, up from 9 in May, but down 2 days from June of last year.
Interest rates are holding steady, which is good news for buyers still hoping to make their move by the end of summer. Despite the competitive market, our clients are still finding places they love! Thinking of buying? Even with all of the competition, we think many buyers will be better off buying now than waiting until next year (when interest rates will likely be higher and inventory will likely be even more squeezed). We are always happy to talk through your plans and see if that is true in your circumstance.