At the end of 2014, we had hit an all time low in inventory levels that we had not seen since 2000. In a not very surprising turn of events, our number of homes for sale has dipped even lower! The strange thing is that our Average Number of Days on Market is going up, as you can see in the graph below.
You can see the numbers below don’t lie! We have not seen this few homes for sale in over a decade and a half! While it’s still early on in the “listing season” (typically March through May), it’s obvious that unless we get a massive influx of new listings over the next few months, we’re going to have a very slim summer season.
Since the interest rates are still so low, and there are lots of buyers out there looking for a new home, it has resulted in multiple offer situations on the majority of the properties that are listed under $400k. You can see how this directly affects the Average and Median Sales Prices this year over the last few years.
In spite of our available listings slump, we’re still surpassing prior years in total closed sales for Single Family Residences.
It’s starting to sound like a song stuck on repeat, but we need to get more listings on the market! Buyers are chomping at the bit, and houses in certain price ranges aren’t staying available for long before they go under contract. Buyers are running into situations like I mentioned before where they’re in competing offer scenarios, and sellers are having to weight things like contingent offers against sales price.
If things continue as they have, we have barely enough inventory for another two and a half months of sales. If the number of sales increases, and the new listings don’t increase in ratio, we could potentially run out of new available homes by May!
If you, or someone you know, is interested in selling or buying a house, please give me a call!