What’s Happening to the Housing Market?
Here’s your latest market update to guide you with your real estate plans.
Are we in a buyer's market, a seller's market, or are we in both? The market is at a really interesting point right now, and today I’ll talk about why.
In the last report, I included months’ supply of inventory with a graph. At 0:38 in the video, I'm showing a table that I think illustrates the point a little bit more accurately. See if you can follow me—I'll go from left to right, top to bottom.
If we compare the current and previous month (that's July versus June), our month’s supply went up 33%. Meanwhile, if we compare this year versus last year (that's July 2021 to July 2022), we are up 168%. Also, If we look at the second quarter of last year and the second quarter of 2022, inventory went from 0.9 to 1.8, which is up 102%.
"If you have a reason to buy or sell now, then do so."
Let’s take a look at today’s stats. Inventory has climbed almost 50% since last month, so we’re starting to see this big change year over year. We went from 1.2 months supply in August 2021 to 3.1 months this year, which is a 160% increase. Our current months of inventory versus the previous year to date went from 0.9 to 2.3, which is up 155.9%. You get the idea.
With the graph at 2:01, you can start to see the trend with the month’s supply. Take a look at the “for sale” from May 2021 to July 2022. The numbers gradually moved up from 158 to 292. There are a few months there where we're still down because the top of the market probably was in April 2022. That's when 174 new listings came on the market, and the number of homes sold was only 156. It was very, very close. What we're starting to see is the number of homes sold decrease slowly.
You can see the trend moving down. At the end of the day, I think it's important to still look at this as an opportunity for buyers out there. As interest rates go up, the prices stay the same if not drop a little bit. At this time last year, you could have had the same price, but you would go 15% to 25% over asking price with these escalation clauses. In reality, as the interest rate goes up, you're paying less since you don’t have to pay over the asking price. I still think it's an opportunity for both sides.
Don't worry about the market in regards to whether you wait or not. If you have a reason to buy or sell now, then do so. That's my advice. For a more detailed explanation about this topic or anything real estate related, call or email me. I’d love to connect with you!