Today we’re going over the latest numbers from the real estate market.

Is our real estate market going through a correction? Today I’ll share the stats that show what’s happening in today’s market.

At 0:20 in the video above, you’ll see a chart that shows the inventory levels in our market over the last year. Remember that inventory is the leading indicator people look at to gauge where the market is headed. Active inventory jumped up from 1,272 homes last month to 1,980 this month, which is a 64% increase. This is a seasonal tradition for this time of year; now that the weather is turning, more people are putting their homes on the market.

Referring back to the same chart, you’ll see that pendings dropped from 2,316 homes last month to 2,149 this month. That drop is due to increasing interest rates. Experts say that rates will continue to rise throughout the year. Rising rates, along with rapidly appreciating home prices, mean that buyers are losing their purchasing power and can afford less. Some are even being priced out of the market.

It’s not all bad news for buyers. Our current conditions are providing buyers with more opportunities. In the aforementioned chart, you’ll see that 2,149 homes closed last month. However, keep in mind that closings are a lagging indicator of the market.

The next chart at 2:19 shows the average price of homes per square foot since February 2021. Over the last year, some neighborhoods have appreciated by 20% or 35%. That rapid pace is not sustainable, and we’ll likely see this begin to stabilize in the months to come.

At 2:43, you’ll see the average list-to-sales price ratio, days on market, and months of inventory over time. On average, homes right now are selling for 103% of their asking prices. We’ll keep an eye on this; I believe that this ratio will slide a bit lower as time goes on. Currently, homes are taking an average of 15 days to sell. Inventory has jumped up from 0.5 months to 0.9 months supply. This is the first time we’ve even been close to having a month of supply on the market in the last 22 months.

So what does this all mean? If you’re a buyer, it means you have more options to choose from, and even though rates are rising, they’re still historically low. By buying now, you can still lock in a low rate and secure a manageable monthly payment before prices and rates rise even more.

If you’re a seller, now is a great time to list. Sellers with well-priced homes are still occasionally receiving multiple offers, which helps them to net top dollar when they close.

Whatever your real estate plans are, if you have any questions or need assistance, don’t hesitate to give us a call or send us an email. We’d love to help you.