How has the real estate market done so far this year? What’s happening now? I’ll explore all of the latest trends in our market, as well as how they impact you as a homebuyer or seller.
So far this year, sale prices are the highest they’ve been since 2008, back when the market started to slide. The average days on market is at 68 days, the lowest it’s been since 2006. In short, we’ve recovered really fast and now we are at the same point we were before the market started to slide about 10 years ago.
What does that mean for you?
As a seller, you can be really successful in our current market. If your home is priced correctly and in great condition, you can sell quickly and even draw multiple offers.
For buyers, this summer’s market has been very frustrating. Either you keep getting beat out by the competition or you can’t find a home that you want because inventory levels are incredibly low. Since the number of new listings has slowed down, it’s important to be patient and strategic. Start the process a little earlier than you normally would have.
What does the market look like moving forward? Historically speaking, inventory doesn’t pick up during the third or fourth quarter. The second quarter is the peak of the market, so the fact that we didn’t have a lot of inventory come in the market during the spring doesn’t bode well for the rest of the year.
During the third quarter, pending sales usually drop 15% to 18% from the previous quarter. This year, pending sales did not increase much in the second quarter compared to the same time in 2016. Usually, pending sales increase year over year. This is the first time pending sales have not increased year over year since 2008.
Although we have really progressed and recovered well, we are starting to see signs of the market pulling back. The fact that inventory isn’t coming on the market at the pace it has in years past is just another factor to keep an eye on.
We also usually see a marginal price decline in the third quarter, and home prices continue to drop for the rest of the year. This is normal thanks to the seasonal nature of our real estate market.
As a buyer or seller, you obviously don’t have much control over these factors. However, it’s important to know what’s going on in the market so that you can strategize and make the best decisions possible.
That is why we are here to help you.
If you have any other questions about our current market, or if you know a local business that we should spotlight in an upcoming video, just give us a call. We are here to help you!