Monday, August 27, 2018 / by Bret Johnson
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Today I want to discuss some of the changes we’ve seen in the market since this time last year.
Supply is a major theme of this update. Supply is still on the low end and we are definitely still in a seller’s market. This ranges across all price points and across the Valley. Since August 2017, active and pending listings have decreased by 10% and 7.1%, respectively. This shows that the low supply is putting pressure on sellers’ abilities to sell homes.
On top of that, monthly sales are up 6.3%, and the average monthly price per square foot has increased by $13 over last August. The low supply is impacting home prices and putting some pressure on buyers to find the right home.
There is some good news for buyers, however: Supply in the price point between $200,000 and $250,000 has risen 8.1% in the past 12 weeks. Not only that, but in the range between $250,000 and $400,000, supply has increased by 5.3%.
It will be interesting to see if the added supply affects the purchase price of those homes since we have noticed that as supply increases, so does the number of weekly price reductions that sellers are incurring. If they can’t get the price they’re asking for, they’ll have to drop them to keep up with the competition
We may expect to see some possibilities for better deals come up in the near future, but overall, not much has changed. We’ve been in a strong seller’s market since around 2014.
Keep in mind that every market is different. If you have questions specific to your home or are looking to enter the market and would like some ideas about where you’ll find the best purchases, please feel free to reach out to us. We’d be glad to help you move forward toward your real estate goals.