Remember the story of Goldilocks? We’re bringing you a special market update with information we think you should be aware as our market is experiencing some changes and we think the Goldilocks story illustrates exactly what’s changed.
If you’re familiar with the story of Goldilocks, you may remember, “not too hot, not too cold.” You also may remember how indecisive Goldilocks was with all the choices she had.
Well, we are halfway through 2019 and things feel different than they have in the past few years. In some price points and areas, the market is still very strong for sellers. In others, however, buyers are gaining the advantage.
Why? It’s simple: continued low rates and more choices.
We ended the first half of the year with the most active listings we've had since October of 2013 when there were over 9,700. That's up 28% year to date from 2018! Goldilocks would love all these extra choices. More choices for buyers means sellers have had to make price adjustments to be competitive.
Sellers with homes priced between $1.5M and $1.75M have been taking the biggest cut at about 91% to 95% sale-to-original-price ratio. Sellers were getting, on average, more than the asking price at this point in each of the past four years.
Homes have been staying on the market longer before going under contract this year. The average days on market is up 25% year to date compared to last year, from 24 to 30 days.
Meanwhile, days on market for all price ranges still indicate a seller's market except over $1 million where the market is more balanced between buyers and sellers with over 5 months of inventory!
Basic economic principles would lead us to believe prices should be down, right? The average sold price did dip ½ percent from May at the end of June, but it has crept up by nearly 2% year to date compared to last year.
We’ve seen listing agents struggling with pricing now that the market is evening out and some buyers want to put in low-ball offers only to find out there are other buyers who are willing to come in at asking price or even higher.
Here’s the good news: while the market isn't what it was, it is still strong and looks like it will continue to remain that way overall. With interest rates staying low and inventory going up, it really is a great time to buy. Prices may be high, but they’re leveling off so it's still a great time to sell, too. Goldilocks might say, “this market is ‘just right’ for everyone.”
As always, we know everyone’s situation is unique.
Please give us a call to discuss how the real estate market impacts you. We’d love to hear from you!