Happy September! Fall is around the corner, which means…pumpkin-spiced everything, changing leaves, and hay rides (for the brave at heart). Hooray! This season’s small joys are something to look forward to as we try and sift through a barrage of news that’s far less exciting than the season’s most coveted artificial flavoring.
Flashy headlines are driving economic fears: Brexit, trade wars, yield-curve inversions, an inevitable recession. The list goes on.
So how does this effect the housing market?
At the end of August, we had 9,350 homes for sale. At the end of July, we had 9,359 homes on the market. So, we saw a small drop month-to-month but a 13% increase in inventory year-over-year (this time last year, we had about 8,200 homes on the market).
Buyers are out looking for and buying homes. And why shouldn’t they? They have purchasing power in this market that they haven’t had in years. All of the economic uncertainty is keeping interest rates low. The gradual growth of inventory is resulting in homes sitting on the market a little longer before going under contract (7 days at this point last year–11 days now).
In addition, sellers are making more price adjustments, or accepting offers below asking price, more frequently now than they were last year, or have for the last several.
That said, this is still a seller’s market.
Average and median sale prices are down a little month-to-month but are up 3.5% and 4% respectively year-over-year. Consider that with an average August inventory of around 16,700 homes, and sellers can rest assured that, if their home is priced correctly, it will sell, and they will capitalize. Supply has not yet caught up with demand.
It’s tough to say.
Our local economy is still strong and will likely remain so through a recession. That means buyers will continue to buy as their purchasing power stays solid.
In the meantime, if you’re not buying or selling, call your lender and ask them about refinancing.
With rates in the 3%’s across the board, you might be able to save yourself a ton of money and/or tap into your equity.
As always, if you have questions, or want to dive in a little deeper to our numbers and what they mean, don’t hesitate to reach out! I love this stuff.