Last week our inventory numbers were in close alignment with historic normals. Nationally, we may be slowly moving toward a more normally functioning real estate market.
How is the local market as an aggregate?
5/30 – 6/05, 2021
Last week, we had 143 new listings come to market. Compare that with 120 units in 2018, 154 units in 2019, and 120 units in 2020. Pretty good!
*Data nerds, click the chart
For under-contracts, last week we had 90 under-contracts. In 2018, 111 went under contract, in 2019 117 went under contract, and in 2020 103 went under contract.
The higher amount of new listings combined with a lower under-contract rate creates a larger supply of inventory, which we truly need right now.
Last week our months supply of inventory (MSI) was 1.43, contrasted with 1.41 in 2018, 1.48 in 2019, and 1.79 MSI in 2020. So, as you can see from these numbers, our supply of inventory is in alignment with previous years.
That said, the number of buyers engaging in the marketplace last week was a bit lower than we saw in recent years. We will have to keep watching buyer activity to see if demand continues to slow or if this is just a “we can finally go on vacation” Memorial Day blip.
How Is The Local Market
By Price Band?
A lot of new inventory came to market in the $2.mm+ and $2.5mm+ categories, with 0 under-contracts, so luxury buyers, there is way more inventory right now.
All of price ranges had fewer buyers go under contract, so there should be decent shopping across the board right now.
*Data nerds, click the chart
National Real Estate Trends
Housing Market Update: Is Relief From The Red-Hot Market On Its Way?
Last month’s national metrics indicate that the real estate market may be softening a little bit and that buyers may be beginning to pull back.
Anecdotally, some homes are staying on the market past the date the sellers had planned to review offers and other homes are being listed without an offer review date, neither of which was happening earlier this spring.
We’re now sometimes seeing homes only get one offer, and even homes that are still getting multiple offers are receiving fewer offers than they were in April.
SOME INDICATORS THAT BUYER DEMAND MAY BE SLIGHTLY SLOWING (OR BUYERS MAY BE GOING ON VACATION AFTER HAVING BEEN PENT UP FOR 18 MONTHS):
– Pending home sales fell 3% from the four-week period ending May 2, compared to a 2% increase over the same period in 2019.
Compared to 2020, they are up 38%.
– Asking prices fell $2,500 from the four-week period ending May 23 to a median of $354,975, up 11% from the same period in 2020.
– For the week ending May 28, mortgage purchase applications decreased 3% week over week (seasonally adjusted). For the week ending June 3, 30-year mortgage rates rose slightly to 2.99%.
That said, the national market is still incredibly robust. We may have hit the peak, but it is still functioning at an incredibly high level, see the charts below.
