Here's how we know the market is shifting and what that means for you.
The real estate market may be cooling, but only slightly. Recent stats show that the number of new listings increased by 4% in the four weeks ending July 4 compared to last year, and 3% compared to 2019. This is the first time that new listings data surpassed pre-pandemic levels.
If you’re worried that you missed the seller’s boat, don’t worry—year over year, the median sales price has increased by 16%. That means supply is increasing, but so are prices. What does that mean for the future? Here are a couple of key takeaways from the latest data:
1. Supply is increasing, but it’s still low. New active listings are up 8% from their lowest point in March 2021, but our overall supply is still just two-thirds of what it was a year ago. And if you’re a seller looking to take advantage of the hot market, you aren’t alone. In fact, sellers trying not to miss out on high prices could be motivating the increase in supply. Ironically, sellers’ enthusiasm could be contributing to the cooldown. However, it’s unlikely that this represents a large enough group to shift the market.
“If you’ve considered selling your home, you still have time.”
2. Buyer demand remains very strong. Homes remained on the market for an average of 18 days. This is down from the all-time low of 15 days in June and July, though it’s still far lower than the 34 days we saw last year.
3. Seasonal shifts might be smaller this year. We normally see the housing market cool in the fall as families prepare to send their kids to school and hunker down for the winter. However, the pandemic may have thrown this pattern off.
So what does this all mean for you? While the market may be cooling, experts all agree that we’re still in a seller’s market. Demand remains high, and supply remains low, even if it’s not quite as low as it was previously. If you’ve considered selling your home, you still have time.
If you have any questions about the market or are thinking about buying or selling a home, don’t hesitate to call us. We can help you navigate all the opportunities available to you.
