What Happened to Our Housing Market in November?
Here’s what you need to know about the state of our housing market.
It’s official: We’re in a neutral housing market. What does this mean for you?
If you check out the graph at 0:49 in the video above, you can see the number of homes for sale compared to the number of homes sold. As the graph shows, the amount of inventory has steadily been increasing since April, while the number of homes sold has been decreasing during that same time. In fact, inventory is up 100% year over year.
"We are well into a neutral market."
Next, if you check out the graph at 1:55, you can see the average price per square foot in our area. These numbers are very telling. The peak of our market was right around March, April, and May, when the price peaked at $429 per square foot average. Now, that number is steady at around $357. This seems like a major drop, but prices are still up 6% year over year. This means that most of the home value gains from the end of last year and beginning of this year are gone.
What does this mean for our average days on market? At the peak of our market, the average home spent around 25 days on the market, which is not much at all. Now, it's all the way up to 46 days on the market as of November 2022.
Finally, if you check out 3:27 in the video above, you can see our supply of homes throughout the year. Back in May, we only had 1.1 months of inventory, which is historically low. Over the span of just six or seven months, inventory has steadily increased to a 5.3 months supply.
Remember that under three months of inventory is a seller's market, between three and six is a neutral market, and between above six is a full buyer's market. Since we have 5.3 months of inventory, we are well into a neutral market. If things go the same way they're going now, we will be in a buyer's market soon.
Nobody truly knows what the future holds, but it looks like there might be new opportunities for buyers. Meanwhile, sellers should act fast before more inventory comes onto the market. If you have questions about this or another topic, please call or email me. I am always willing to help.