July’s statistics bear further evidence that the market is gradually shifting. Compared to June, inventory has increased from 1.16 to 1.37 months, and the average days on market has increased from 14 to 15. The average sales price is down by $29.5K compared to June, and we’ve been seeing more price reductions than we have previously.
While these may seem like minute incremental changes, they work together to send us a message: the market is shifting. Buyers have a bit more inventory to view and are experiencing less competition. Sellers are finding they cannot ask exorbitant prices unsupported by the market. Houses are appraising at asking value because the market has begun to catch up.
The takeaway:
Buyers can search the market with more confidence and have a better chance of finding a home. As always, we recommend you get pre-approved. A good mortgage lender can discuss your loan options and help you find the best way to finance your new home, in some cases with no money down. Talk with a local lender to see how much you’re approved for and to find out what programs they offer to help you get the most house for your dollar.
While the sold-to-list ratio is still slightly over 100%, sellers need to realize that the market is not supporting outrageous asking prices as it once may have been. Prices that are unsupported by the market result in price reductions and limited showings, ultimately resulting in delays getting the home under contract. If you are considering selling, it’s not too late to take advantage of the market. We recommend hiring an experienced real estate firm to advise in determining a selling price to get your home sold quickly and for top dollar.