Here’s a mid-September market update using August’s numbers.
Is the housing market cooling? In short, yeah, it is cooling off a bit. We’ve been seeing this change since April, but it’s finally starting to reflect in the numbers, so let’s take a look at them:
The median price for a single-family home held steady at $875,000 for two months but fell to $850,000 last month. For condos, the median price rose from $555,000 to $560,000.
The sales-to-list price fell from 104% to 102% last month for single-family homes. For condos, it fell from 103% to 102%. This number is how much, on average, people paid over the list price.
We went from 0.9 months of supply to 0.8 months in August. This number is how long it would take us to sell out of homes if no new ones entered the market.
Interest rates are still low. The Fed was supposed to tapper off the bond-buying program, but that doesn’t seem to be happening quite yet.
The average days on market increased from 18 days to 20 days. This number is just how many days the average home takes to sell.
Are prices going to fall? They did fall for one month, but it’s unlikely that they’ll keep falling because this is more like a balancing of the market. The real estate market tends to slow down in August, but once Labor Day hit, it started to pick back up. It’ll be interesting to see the data for September and October.
The market is still super competitive; homes are still selling over list price with multiple offers. I think agents and sellers realized they can’t keep pushing these crazy prices and are scaling back just a little bit. Going forward, I expect the market will be a little more stable. If a home has some issues, it might sit on the market a little longer.
If you have further questions about how our market is doing or anything else related to real estate, you can call, text, or email me. I’d love to help you out however I can.