How has the market changed? (July 2022)

How has the market changed?

While it’s true that, nationwide, buyer activity is slowing, multiple data points suggest that demand remains strong, which should continue to be supportive of home prices.

For example, clients of mine in their search for their first home purchase encountered a house priced at $1,345,000 being bid on by 6 parties. The final price went over $1.6m – way above any comparable sales.

Homes remained on the market for just 14 days on average in June, down from 16 days in May and the fewest days on the market since tracking this metric began in 2011. Plus, 88% of homes that sold in June were on the market for less than one month.

Homes priced right are selling quickly. In terms of inventory, there were 1.26 million homes available for sale at the end of June, which is nearly 10% higher than May’s inventory level. This equates to a 3 months’ supply of homes, up from 2.6 months in May. However, six months is considered a balanced market, so this data speaks to the ongoing imbalance of supply and demand, which also should continue to be supportive of home prices.

Plus, some of the increase in inventory is due to seasonal norms this time of year and not lessening buyer demand, as the media may report. Every year, many parents list their homes for sale by late spring or early summer, so their kids are settled before the new school year begins in the fall, which causes a normal inventory to build over the summer months.

Call me for more information on this topic, every market is different and I am glad to discuss the conditions specific to yours!