Get a jump on your week with the latest in local Real Estate Market trends, Mortgage Rates, and Local Happenings
The Main Story...
... Prices are down slightly. But homes are still selling for more than they're listed.
Buyers need to be ready to act quickly when they find a home that fits the bill and realistic in the current market situation.
June 2023 - Final
In the last week more homes have been closed on, but the number of homes compared to last June is down 13%. The average closed price is down slightly from last month and last year, but still up 18% compared to the 5 year average which is nearly 50% higher than June 2019.
June ended with 463 closed transactions and 30% of those sold for over the initial list price. While 19% of the home sold at the original list price, 51% sold for below list, with an average discount of 6.7%. This is on par with what we saw in May, but a much lower discount rate compared to the first quarter of the year.
Roughly 45% of the current, active listings have been discounted at least once, with that average discount amount of -7.3%. Considering this is higher than the discount amount of homes closed on, this shows that there are still some sellers who are reaching for higher prices, but not showing the value, so they're being passed over. Unfortunately, the longer that a seller sits at a price that's not market-ready, the more likely it will actually sell below market value, in the end.
Closing out the month of June, about 54% of the homes that came on the market in the month are still active. Considering last week there were nearly 90 new listings, that number seems slightly higher than it might normally be, but still shows that roughly 50% of the properties that come on the market are under contract in fewer than 30 days.
Mortgage Rates seem to have hit another plateau, hovering around 6.7%. This is up nearly .3% from the average a few weeks ago.
"Marry the House, Date the Rate", as they say.
To sum it up...
This isn't the first month this year that we've seen a dip in home prices compared to last years highs, but looking at the longterm 5 year average; home prices are still up considerably and look to only be holding there for the near term.
Prior to Covid, homes tended to sit on the market for a longer period of time, allowing inventory to build up and create a "Buyers Market". Currently, we have 20-30% fewer new listings coming on to the market and the average Days on Market is holding at about 2 weeks which makes our average inventory levels near 50% lower than where they have been historically.
This is still a great time to Sell or to Buy, but both Sellers and Buyers need to understand the reality of the current market climate and be prepared to respond to it based on their goals.
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