More inventory again! Nationally and locally, buyers may be having more success.
How is the local market as an aggregate?
Last week, we had 162 welcome new listings come to market. Compare that with 123 units in 2018, 119 units in 2019, and 142 units in the covid boost of 2020.
Last week, under-contracts popped up to 131, a big week-over-week increase from 90 the week before. In 2018, 100 went under contract, in 2019 102 went under contract and in 2020 we had 136 under-contracts.
So last week’s under-contract number was closer to 2020 than the historic normals.
This is good to note, indicating that buyer demand is not slowing consistently.
Our increased inventory over the past few weeks has created a little more supply. Last week we had 1.65 months supply of inventory (MSI). In 2018 we had 1.26 and in 2019 we had 1.28 MSI, where in 2020 we had 2.45 MSI year-over-year. All these numbers strongly reflect a seller’s market.
*Data nerds, click the chart
How Is The Local Market
By Price Band?
After several weeks of low activity in the entry-level market, last week buyer demand went up considerably, with a 131% sell-through rate. All other parts of the market had quieter buyer demand, so again, it should be easier to shop in all categories above $500k.
*Data nerds, click the chart
National Real Estate Trends
Housing Market Update: Pending Sales Continue to Slow—Still Up 29% from 2020
As we head into June, the breakneck housing market may be slowing slightly. Leading indicators of activity are now mostly cooling off instead of continuing to heat up.
The Mortgage Broker’s Association (MBA) shows mortgage applications have been falling since late March and are now 7% below pre-pandemic (Jan/Feb 2020) levels, despite low-interest rates and easing credit access
The cooling market is also reflected in a four-week decline in pending sales and a drop in Redfin’s demand index, which is down 12% from its late March peak. Taken as a whole, the data paints a picture of a slightly less effervescent buying experience.
With demand stabilizing, the housing market should become more balanced, allowing homebuyers to have a less stressful and challenging time finding and competing for a home. Sellers you will still have a very comfortable number of buyers.
Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws.
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