*Stats from May 2023
The number of new listings entering the market was up from April, but down pretty far from this time last year. Much of this has to do with the “lock in” effect that Hancen Sale from KAAR has described in his presentations. Sellers are reluctant to leave their good interest rate mortgages. If we get some stability in the interest rate department, we may see more movement because high prices are still enticing sellers to take advantage of the sustained buyer demand.
We are seeing a few more listings remaining active when compared to the last two years. Interest rates and higher prices are also slowing buyers a little bit leaving those new listings that DO come on the market hanging around for a few days. This is giving today’s buyers a handful more choices than they have had in two years, so that’s not a bad thing.
The number of homes going under contract essentially remained flat over last month. But really, four out of the last six years have shown a similar trend month over month, so this looks to be seasonal. We are, however, at a sales pending low mark. There are fewer sellers and fewer buyers, so it makes sense that there are fewer pending sales.
We had a big jump from April to May, but again, here is the effect of fewer people in the market in general, for all the reasons we’ve already mentioned. May over May, we’re down 11%. But don’t forget that last May, interest rates were still low and the market was still red hot. Being down 11% from an overheated market still means there are a fair amount of homes still selling.
Months of Supply
We’re back down to 3 months’ worth of inventory, which is pretty low. So even though there aren’t as many homes selling, the balance between the number of sellers and the number of buyers seems to have moved down at the same rate, which is a rather unusual occurrence.
Median Sales Price
Sales prices continue to remain strong. In fact, we’re almost exactly where we were this time last year, when we’d hit the height of prices. Median in our MLS is about $335,000 now. There isn’t an expectation that this is going to decrease much, if any.
Average Days on Market
As is typical, the average time a house spends on the market falls from February as we enter the spring and summer months. We’re at 31 days on them market on average, still a peppy pace when compared to more balanced years like 2019 when we were just over 40 days on the market. But not quite as quick as we’ve had in two years.