As we enter the heat of summer, we are seeing the typical “cooling off” in the housing market. However, in a market with limited inventory, a cursory glance wouldn’t reveal much difference from last month. The most noticeable places to see the market leveling off are in the available inventory and pricing: the 1.16 months of inventory in June 2022 is up from both last month (May 2022 at 0.85) and last year (June 2021 at 0.74). The average sales price has also dropped about 6% since May, falling from $514,571 to $486,092. Likewise, over the last month, we’ve been seeing more price reductions in active properties.
Even so, year-over-year numbers indicate the market is still thriving and more inventory is still needed. The average sales price compared to June 2021 is up 21.2% which, when translated into dollars, is an increase of $84,921. The median year-over-year sales price is up 27%, or an increase of $95,000. June’s inventory has gone up a little, but it’s still significantly lower than a “balanced” market of 6 months, indicating it’s still a seller’s market.
We still hold to this advice to give you the greatest edge:
SELLERS, if you are considering selling, now is a good time to take advantage of the market. Seasons and mortgage rates always have some influence but, looking at the numbers, there’s no better time to sell. We are still seeing multiple offers, and many sellers are still getting more than their asking price. There’s no guarantee either of those will transpire but, if a home is priced well, it will get plenty of views and the odds go up.
BUYERS, you should always 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.